Greece agrees steps to tackle banks' bad loans

[unhappycamper]

http://www.ekathimerini.com/200522/article/ekathimerini/business/greece-agrees-steps-to-tackle-banks-bad-loans



Greece agrees steps to tackle banks' bad loans
10:42

Greece will take steps to tackle the mountain of bad loans weighing on its banks as part of its deal with international creditors, a draft of the agreement obtained by Reuters showed on Wednesday.

Under a European Banking Authority yardstick, Greek banks' "non-performing exposures" (NPEs) -- which include loans in arrears for more than 90 days (NPLs) and restructured credit unlikely to be repaid -- hit 40 percent of their portfolios last year.

The bad-debt load has worsened since then, as Greece sank back into recession and was forced to impose of capital controls, requiring banks to set aside more provisions against the bad loans and constraining them from funding the economy.

Resolving the issue has been one of the major sticking points in talks with creditors.