One of Greece’s four systemic banks, Eurobank, has announced shortly after releasing its third-quarter results that the bank is forming its own special purpose vehicle (SPV) for handling its pile of bad loans.
In the overview of the Greek financial system that was published late on Thursday, the Bank of Greece (BoG) outlines its proposal for the systemic management of non-performing exposures (NPEs).
Eurobank recorded net profits of 45.1 million euros in the third quarter (Q3) of 2018 compared to profits of 1.1 million in the previous quarter.
Having weathered a tumultuous October, Greece’s domestic banking system and relevant stakeholders that include Bank of Greece and HFSF are looking into ways that will help banks reduce the risk on their books and bring down their non-performing exposures.
Greek authorities appear to be edging towards the option of creating an Asset Protection Scheme (APS) to help banks reduce their stock of bad loans, developments this week suggest.
Following weeks of uncertainty and pressure on the banking sector, which climaxed in a big drop in bank share prices on Wednesday, there have been reports of efforts to provide the Greek lenders with assistance.
Greece’s four systemic banks have submitted new Single Support Mechanism (SSM) guidelines on Friday, under which the banks’ bad loans will be tackled.
The persisting issue of non-performing loans (NPLs) was one of the key items discussed last week by the government and the institutions.
Payment statistics by the European Central Bank released last week have revealed that card payments in Greece experienced notable growth in recent years.
Piraeus Bank’s second quarter (Q2) results showed that net profits from continued operations came to 24 million, recovering from a loss of 80 million euros in Q1.