Banks brace for expansion in unpaid loans
The sum of installment repayments for loans taken out by individuals and small businesses that have been suspended in agreement with the banks as part of the economy's support measures add up to almost 4 billion euros.
The measure of suspending tranche payments has already been implemented for 60,000 households and small companies, and is expected to gradually rise to a much higher figure as the consequences of the coronavirus crisis become clearer.
This amount of 4 billion euros protected from possible forfeiture due to economic hardship does not incorporate the loans of medium-sized and large enterprises. In this category banks apply a combination of interventions that include measures to boost cash flow, along with the expansion of credit lines and new issues for working capital.
According to credit sector data, of the 4 billion euros of suspensions already...