Greece look to prevent new generation of bad loans after coronavirus

·

Preventing an increase in soured bank loans is a top priority for Greece as it grapples with the economic fallout from the new coronavirus pandemic, Prime Minister Kyriakos Mitsotakis told parliament on Thursday.

Greece exited its third international bailout in 2018. A nationwide lockdown imposed to contain the spread of the virus has turned expectations for strong growth upside down as the government now projects a deep 5-10% recession this year.

“Dealing successfully with the health crisis will become the foundation for an economic restart,” Mitsotakis said.

Restrictions will be gradually eased in the coming months, starting on May 4. Greece aims to cut red tape and speed up reforms to attract more investment and restart its economy as fast as possible.

The conservative premier said the state would continue to support the unemployed and workers. He also said the protection of primary residences from foreclosures would be extended by three months to end-July 2020.

A new state-funded transition plan would come into force in July to further support debtors.

“During the coronavirus ordeal no Greek will see his home at risk,” Mitsotakis said. “Our aim is to prevent a new generation of bad loans”.

Bankers in Greece say the coronavirus pandemic has caused market dislocation, disrupting transactional activity across Europe, including sour loan disposals at home.

Athens has put in place the Hellenic Asset Protection Scheme (HAPS), dubbed Hercules, to help banks offload up to 30 billion euros of bad loans by turning bundles of impaired credit into asset-backed securities that can be sold to investors.

The chairman of Eurobank’s loan servicer FPS told a crowdcast this week that Greece’s lockdown could cause a 10-15% increase in impaired loans, or a rise of about 7 to 10 billion euros to the current stock of 70 billion euros.

Sourced By: Reuters

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Earlwood’s Greek spirit centre stage as ‘Plateia’ Festival secures state funding

The City of Canterbury Bankstown will host the “Love Earlwood” festival thanks to the NSW Government’s Open Streets 2025-28 Program.

Greek Consul General honoured at Hellenic Club farewell event in Sydney

Sydney’s Greek community came together on Thursday for a dignified farewell dinner in honour of Greece’s Consul General, Ioannis Mallikourtis

Field of candidates announced for 2025 Greek Community of Melbourne Board election

Greek Community of Melbourne has officially called elections for a new Board of Directors, with members set to head to the polls on June 29.

Australia Cup 2025: Strong Greek heritage club presence as Final 32 locked in

The cast for the Hahn Australia Cup 2025 Round of 32 has been decided following the completion of the Preliminary Rounds.

Apostolakis and Trimis named on Young Matildas squad for upcoming training camp

CommBank Young Matildas Head Coach Alex Epakis has settled on a 32-player squad for a domestic training camp to be held in Sydney.

You May Also Like

‘I have love for everyone’: Christina Giannakis turns 100 and shares her secret to a long life

A migrant from the Greek island of Kefallonia, Christina Giannakis, recently celebrated her 100th birthday with friends and family.

Top five most popular Greek coffees and how you can make them at home

In celebration of International Coffee Day, here is a list of the top five types of Greek coffee and how you can make them.

Greek PM revokes decision to allow fans at football matches

Kyriakos Mitsotakis has revoked the decision to allow a small number of fans to attend football matches, after the health committee gave them the 'all clear' only yesterday.