This is how the new BoG’s bad bank plan will work

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.

Eurobank’s  CEO Fokion Karavias estimated that Greek NPEs will increase due to the pandemic but the problem will be lower compared to the 10-year crisis and manageable.

AXIA’s latest report focuses on the secondary NPL market, noting that this is undoubtedly an opportunity for Greek banks, just…