Tsakalotos says biggest challenge in economy is NPLs

Finance Minister Euclid Tsakalotos said the biggest problem facing the Greek economy are the non-performing loans held by local lenders, adding however that "there is no need to panic."

"The banks are achieving their targets, they have their own plans. We have our own plans with a system of guarantees. Economic growth and the rise in real estate prices are also helping," he said in an interview with News247 on Tuesday.

The minister said the government is working with the Bank of Greece and the Hellenic Financial Stability Fund to resolve the problem.

He also reiterated his warning that scandal-mongering could undermine the economy and politics, saying "it only helps Golden Dawn."