Nouy: Bad loans ‘ma­jor chal­lenge’ for Greek banks

Kathimerini English - - Focus -

Bad loans pose a ma­jor chal­lenge to Greek banks but the sec­tor has im­proved “sub­stan­tially,” Euro­pean Cen­tral Bank su­per­vi­sion chief Daniele Nouy told the Athens News Agency yes­ter­day. “The sit­u­a­tion of the Greek banks has im­proved no­tice­ably and sub­stan­tially in the last two years, both in terms of cap­i­tal ad­e­quacy and in terms of gov­er­nance,” Sin­gle Su­per­vi­sory Mech­a­nism (SSM) head Nouy said. “Now, the ma­jor chal­lenge is to deal with the non­per­form­ing loans. I am op­ti­mistic that with the new le­gal frame­work ex­pected to be en­acted soon this chal­lenge will be ad­dressed as well.” Greek banks face a moun­tain of bad loans and have been given tar­gets by the ECB and the Greek cen­tral bank to re­duce them by nearly 40 bil­lion eu­ros by the end of 2019, from 106 bil­lion cur­rently.

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