Moody’s on Wednesday blamed the “low quality” of assets held by Greece’s lenders, whose balance sheets remain burdened by a high pile of NPEs, hours after Bank of Greece (BoG) Gov. Yannis Stournaras noted the sector remains inordinately affected by “external factors” but overall in a recovery mode.
The Greek central banker was pointing to turbulence in global money markets stemming from uncertainty over Italian finances and borrowing prospects, with repercussions directly affecting thrice bailed-out Greece.
Conversely, the international ratings agency assessed that Greek lenders’ assets rose to 291 billion euros at the end of June 2018, whereas non-performing exposures (NPEs) tipped the scales at 89 billion euros.
“The huge load of NPEs is consuming resources and reducing banks’ profits and funds,” the Moody’s report notes.
On the same day, European Stability Mechanism (ESM) Managing Director Klaus Regling admitted that, on the surface, there is concern over Italian developments, but that it’s “not quite fair” to compare Italy with Greece. He said reminded that Italy over the past crisis years “never lost market access”, while adding that Greece is now in a much better condition and has left its bailout program.
In terms of Italy, he refused to speculate over any ESM assistance to Rome, preferring instead to “wait and see” coming developments and to study forthcoming numbers on Italian finances and the country’s economic performance.
Read more at naftemporiki.gr
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