{"id":19350,"date":"2020-09-17T23:19:30","date_gmt":"2020-09-17T20:19:30","guid":{"rendered":"https:\/\/bestinsurance.gr\/a1\/?p=19350"},"modified":"2020-09-17T23:19:30","modified_gmt":"2020-09-17T20:19:30","slug":"bank-of-greece-likely-to-unveil-bad-bank-plan-by-end-september","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/19350","title":{"rendered":"Bank of Greece Likely to Unveil Bad-Bank Plan By End-September"},"content":{"rendered":"<p><span style=\"color: #000000;\">(Bloomberg) &#8212;\u00a0The\u00a0Bank of Greece\u00a0will likely submit a plan to the government by the end of the month to help the country\u2019s lenders clear most non-performing loans from their balance sheets.<\/span><br \/>\n<span style=\"color: #000000;\">\u201cProbably before the end of the month, the Bank of Greece is going to unveil its own proposal for the creation of a bad bank\u201d\u00a0Alex Patelis, chief economic adviser to Prime Minister\u00a0Kyriakos Mitsotakis, said at a virtual event organized by the\u00a0Athens Stock Exchange. \u201cWe \u2018re obviously going to study it very carefully, and take it from there.\u201d<\/span><\/p>\n<p><span style=\"color: #000000;\">Greece\u2019s huge stock of non-performing loans &#8212; 60.9 billion euros ($72 billion) as of the end of March &#8212; is a legacy of the decade-long debt crisis which led to a roughly 25% cumulative drop in economic output.<\/span><\/p>\n<p><span style=\"color: #000000;\">Though the value of the country\u2019s bad loans is significantly down from its March 2016 peak of about 107 billion euros, Greece still has the worst soured-loans ratio among\u00a0European Union\u00a0member states.<\/span><\/p>\n<p><span style=\"color: #000000;\">Greek lenders have pledged to bring the ratio down to the European average by the end of 2021, and banks have already begun using the government\u2019s so-called Hercules plan, designed to help them package loans into securities with partial state guarantees.<\/span><\/p>\n<p><span style=\"color: #000000;\">The program is expected to help lenders trim soured debt by over a half, according to Patelis. Even at that point, though, Greek banks would have a high NPL ratio, after also taking into account the effect of the coronavirus pandemic.<\/span><\/p>\n<p><span style=\"color: #000000;\">\u201cA bad bank is not in itself a bad or a good thing,\u201d Patelis said. \u201cThe devil is always in the details.\u201d<\/span><br \/>\n<span style=\"color: #000000;\">The Bank of Greece has hired\u00a0Rothschild &amp; Co.,\u00a0Boston Consulting Group Inc.and\u00a0Deloitte LLP\u00a0to advise on the bad-bank plan.<\/span><\/p>\n<p><span style=\"color: #000000;\">The aim of the program will be to help lenders cut bad debt and at the same time handle deferred tax credits that account for more than half of their capital.<\/span><br \/>\n<span style=\"color: #000000;\">The Athens-based central bank has\u00a0said\u00a0that existing bank structures will be strengthened rather than overturned, with third parties participating in management of bad loans. Any losses associated with soured credits will be exclusively covered by the lenders and not by taxpayers,\u00a0up to\u00a0the minimum capital adequacy ratio limit.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212;\u00a0The\u00a0Bank of Greece\u00a0will likely submit a plan to the government by the end of the month to help the country\u2019s lenders clear most non-performing loans from their balance sheets. \u201cProbably before the end of the month, the Bank of Greece is going to unveil its own proposal for the creation of a bad bank\u201d\u00a0Alex<\/p>\n","protected":false},"author":1,"featured_media":19353,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[],"class_list":["post-19350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/19350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=19350"}],"version-history":[{"count":3,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/19350\/revisions"}],"predecessor-version":[{"id":19354,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/19350\/revisions\/19354"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/19353"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=19350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=19350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=19350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}