Greek banks NBG, Alpha up provisions to cover coronavirus loan impact

National Bank (NBG) and Alpha, two of Greece's largest lenders, increased provisions to cover anticipated loan impairments from the coronavirus crisis as they kicked off the first quarter earnings season for the sector on Thursday.

The coronavirus pandemic struck just as Greece's banks were making headway in their bid to sell, write off or restructure billions of euros of bad debt accumulated during the last financial crisis.

The country's economy is seen contracting by 6 percent this year, under the central bank's baseline scenario, hit by restrictive measures to slow the spread of the virus, the global recession and an expected sharp drop in tourism.

The stock of non-performing loans (NPLs) declined by 16 percent last year but remained at a high 40 percent of gross loans, hampering banks' ability to lend and finance economic recovery.

National Bank NBG...