Despite the progress that Greek banks have made in reducing red loans, complacency is not allowed as from the first indications it seems that we have new flows of non-performing loans and an increase in regulated loans. This warning was addressed by the Deputy Governor of the Bank of Greece Christina Papakonstantinou speaking today at the 4th NPL Summit.
Ms. Papakonstantinou pointed out that the experience so far from the implementation of the new bankruptcy legislation is positive, but not satisfactory. Of course, the pandemic created malfunctions in some mechanisms. From now on, it is of the utmost importance that all the parties involved use the tools of the law and support the debtors who have prospects for sustainability, so that they become aware in the future, thus contributing to the improvement of the quality of the banks’s loan portfolio. as well as in the overall effort to deal with non-performing loans.
Referring to the developments in the so-called secondary loan market, Ms. Papakonstantinou said that under certain conditions, this market will attract the interest of new investors. In addition, an expansion is expected in the real estate market with the interest focusing on loan transactions with housing collateral from specialized companies. Today, in the Greek secondary market of red loans, there are 23 Loan and Credit Receivables Management Companies, which have received an operating license from the Bank of Greece. The degree of activity of existing companies varies considerably. In particular, the industry shows a significant concentration with only 3 of them holding about 80% of the market share, based on the total value of the managed exposures [123 δισ. ευρώ στο τέλος 2021].
Based on the estimates of the business plans for the securitized exposures, most of the receipts, almost 60%, are expected to come from adjustments and the rest, mainly from liquidations and finding a consensual solution. [36%]while a very small percentage [5,5%] will concern simple receipts.
SOURCE: AMPE
Source: Capital
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