The head of the Prime Minister’s Financial Office, Alexis Patelis, expressed his optimism for the course of the Greek financial system, noting that “in 2019, half of the portfolio was with” red “loans, so you could not talk about a banking system that could “It’s lending. The primary goal was to change that.”
Speaking at the “Banking Summit: Paving the way for growth” conference, Mr. Patelis added that “from 2016 to 2019 there was no serious settlement of” red “loans”, and added that “soon our fellow citizens will see the debts “There were banks that were considered to be in a difficult situation, we saw a series of capital increases. Now we are talking about a completely different context.”
According to Mr. Patelis, the problem is behind us and in front is the fact that “banks must prove why they exist: to give loans, to return to profitability, to give dividends”. As he pointed out, “all four systemic banks are ready to channel loans to the private sector through the Recovery Fund”, stating that “they will provide writing samples soon”. “The government is helping by facilitating the process,” he added.
At the same time, he estimated that in addition to lending, the big challenges are digitization and competition, saying that “from now on, other players with credit expansion will enter the market”, citing as an example Viva Wallet, which ” has plans for credit expansion to small and medium-sized enterprises “. He also said that “we will soon see a series of credit products that will surprise us with its complexity and range”, adding that “Greek banks have challenges and great opportunities ahead of them. They are no longer classified as cheap bank shares”. He noted that “for a decade a whole generation has not received bank credit”, so “here the banks must prove that they can take advantage of the opportunity”.
Asked about the Financial Stability Fund, he said that “there was a long negotiation, a complex law is being prepared, which will be submitted in April” and which will do three basic things:
– It will simplify the administration of the Fund.
– It will reduce the rights of the Fund’s shares.
– The strategy of impairment of state treasury shares is planned. “The fund will hire an investment investor,” he said.
Finally, when asked to comment on the impact of the Russian invasion on Ukraine, he said: “We are facing a global shock due to the Russian invasion of Ukraine. Commodity prices are rising, inflation is rising and growth is lower than before. “For an economy with high government debt and many years of deflation, a little inflation will help raise wages and stimulate demand.” He added that “some increase in interest rates by the ECB is in some way legitimate”, while predicting that “the Summit will be difficult”, as “there is no agreement on many levels”.
SOURCE: AMPE
Source: Capital
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