The “red” loans for the Greek economy are still the “red” loans. Although the funding tap has been opened, there are not enough investment plans to absorb the resources. This important issue was developed by the presidents of the four Greek systemic banks, in the context of the 7th Delphi Economic Forum, which takes place in Delphi on April 6-9 and is under the auspices of SA. of the President of the Republic, Mrs. Katerina Sakellaropoulou.
“The red loans left the banks but not the Greek economy. We can not lend to those who are ‘red’,” he stressed. George Zanias, Chairman of the Board and Non-Executive Director of Eurobank, stressing that there are huge resources available. “The loans serviced are at 60% of GDP and must be doubled,” added Mr. Zanias, arguing that we should not give indiscriminate money, but targeted, because the next crisis may come and we may end up with memoranda again.
The issue of red loans was also mentioned by George Chatzinikolaou, President of Piraeus Bank. During the discussion moderated by his journalist Capital.gr, Leonidas Stergiou, Mr. Hatzinikolaou pointed out that the problem remains, expressing the hope that the new investment law will work quickly and green the loans of the healthy. “There is no question of financing, but of investment,” said the president of Piraeus Bank, explaining that investment plans are being rejected either because they are unsustainable or because many applicants cannot get financing because of red loans. He said it was necessary to promote radical reforms in order to make the country an attractive destination for investment.
The need for reforms was also addressed by Vassilios Rapanos, Chairman of the Board of Directors of Alpha Bank, considering it equally important for the country to acquire an investment grade. He stressed that the government must support citizens and businesses, but without undermining fiscal stability. According to Mr. Rapanos, the culture of payments must be maintained and it must be understood by the political system that banks do not manage their own money but depositors’ money.
He appeared optimistic about the course of the Greek economy the chairman of the board of directors of the National Bank of Greece, Gikas Hardouvelis, foreseeing a 15 years of growth, if the reforms continue, wages will gradually increase and we will create a piggy bank for young people. As for debt, he stressed that it increased in all countries during the pandemic. “Our debt is sustainable because we managed to lock it in with very low interest rates,” said Mr. Hardouvelis. He added that as long as the economy is doing well, loans will grow, arguing that banks and businesses will build a new Greece hand in hand.
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Source: Capital
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