Central banker reveals plan to resolve NPLs not covered by Hercules
The Bank of Greece will activate a plan to resolve the 60 pct of nonperforming loans (NPLs) not covered by the "Hercules" plan proposed by the government, bank governor Yannis Stournaras revealed while speaking at the Thessaloniki Summit 2019 on Friday evening.
EU-approved Hercules asset protection scheme foresees 9 billion euros in state guarantees to help reduce banks' NPLs via a 40 billion euros taxpayers' buffer.
Stournaras called project Hercules "a positive step in the right direction, but a small step," that would need additional measures.
"Hercules covers nearly 40 pct of NPLs, leaving 60 pct which must be dealt with in other ways," the central bank governor said.
Commenting on the International Monetary Fund's (IMF) report on Greece released the same day, he asserted he does not share its pessimistic forecast on the country's productivity, and...