The problem of non-performing loans (NPLs) in the domestic banking system we have left behind with a series of non-organic actions that took place (sales, securitizations mainly in the last 3 years and with the help of “Hercules”) but also organic actions such as arrangements, stressed the General Manager of Corporate and Retail Banking Receivables Management of the National Bank Fotini Ioannou, speaking today at the FIN Forum conference. At the peak of the crisis in 2015 we had reached as a system to have 115-120 billion euros NES, while this year will close close to 15 billion euros total NES, said Ms. Ioannou.
Mr. Ioannou referred to the landscape for the next day at the level of non-performing loans, pointing out that it will definitely be different and there will be four parameters that will play a role in shaping it.
As he said:
– The first parameter is related to something we could not have foreseen such as the geopolitical crisis: rising inflation, rising energy costs, the potential impact we may have on growth from all of this and how these could potentially affect their disposable income. households and whether this will lead to a new generation of red loans. We have no alarming early indications but we are closely monitoring developments.
– The second parameter concerns the end of the support programs. Through the “Bridge 1” program, 82,000 borrowers have received support with loans of 6 billion euros and through “Bridge 2”, 13,000 borrowers with a total of 5.4 billion euros in loans. It remains to be seen how they will behave after the first quarter of 2022. We have no early indication at this time that leads us to believe that we will have new MES flows but needs close monitoring.
– The third parameter is related to the full start of the new bankruptcy. In the out-of-court mechanism we have 48,000 active applications (42,000 applications from individuals with total debts to banks and the State, almost 16 billion euros). Requests that we need to process and find solutions. We have the property recovery agency that we need to see how and when it will work.
– The most interesting parameter is the secondary market of NPLs, the market correlations and the opportunities created by this market for the banking system. The consolidation of banks’ balance sheets has so far led to the transfer of NPLs from banks to investors and servicers.
The implementation of the relevant business plans by the servicers will create opportunities for the Bank in two pillars: Through the recovery of the loans themselves as a result of the active management that will be done (reperforming portfolio) and through the financing of the properties that will change hands. .
Source: Capital
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