The Bank of Greece is working on a plan for the creation of a “bad bank” to which all nonperforming loans (NPLs) of banks will be transferred. Still, as reported by the FT, the EC recently rebuffed an ECB proposal for a euro zone-wide bad bank.
21 April 2020EditorsComments Off on Stournaras; a bad bank must be set up quickly. NPEs expected to increase by as much as 11% in 2020
ECB officials, worry that the lock down due to coronavirus pandemic and the subsequent recession will trigger another surge in non-performing loans (NPLs). Bank of Greece reportedly expects NPE ratio to climb by 4%-11% due to Covid-19 crisis.