Plan to clear Greek banks’ bad debt looks feasible
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Subject Efforts to cleanse banks’ loan portfolios. Significance More than half of Greek bank lending is classed as ‘non-performing exposures’ (NPEs), constraining lending capacity and so putting negative pressure on GDP growth. The government says it should have a whole package of measures in place by mid-August to deal with NPEs. There have been slippages before, but this time the creditors are leaning very heavily on Athens to stick to the timetable. Impacts Bad debts will limit commercial banks’ capacity to make new loans to key sectors of the economy. This will have an adverse effect on working capital for existing businesses and their trade. Lack of liquidity will also slow new investments and construction.
2021 ◽
Vol ahead-of-print
(ahead-of-print)
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Keyword(s):
1995 ◽
Vol 27
(1)
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pp. 112-126
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Keyword(s):