The value of non-performing loans held by the four systemic banks in Greece amounted to 103 billion euros at the end of December 2015, a problem needed an urgent and efficient resolution by all interested parties with a sense of cooperation and social sensibility where necesssary, Aris Xenofos, chief executive of Hellenic Financial Stability Fund announced on Tuesday.
Presenting a report, recently completed by the Fund on non-performing loans of large enterprises, Xenofos noted that legislative and regulatory interventions made by the government and the Bank of Greece were able to create, gradually, an action framework which will allow a recovery of the financial markets to the benefit of the Greek economy, employment and social cohesion.
More analytically, the Fund’s action plan on NPLs of large enterprises envisages five steps:
1) Research, tracking and ranking limitation and hurdles in the restructuring of large corporate debts held by Greek banks, such legal, tax, accounting and banking market issues.
2) Planning a coordination framework between banks to deal with large corporate restructuring, finding solutions based on international standards adjusted to Greek reality.
3) Setting a perimeter of problematic enterprises and sectors.
4) Evaluating existing capabilities of the banking sector, leading banks to adopt segmentation of cases, encourage advanced and long-term solutions, developing skills and improving quality and volume of necessary information.
5) expanding the role of capital markets, by activating capital market players through adopting a progressive, legal, regulatory and tax framework on bankruptcy and creating favorable macro-economic conditions.
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