Greek credit system ‘able to absorb foreign jitters’
The Greek banking system is clearly in a much better position now to absorb any turbulence from international markets than it was four years ago, Finance Minister Christos Staikouras said on Thursday, commenting on global banking system tensions caused by the collapse of Silicon Valley Bank and the crisis at Credit Suisse.
Speaking in Parliament, Staikouras said that Greek banks have restructured their balance sheets with the use of the Hercules program, whose guarantees will burden the public debt, and presently have single-digit nonperforming loans rates.
The finance minister noted that in July 2019, NPLs were around 44% of bank portfolios and have since dropped to 8.7% in December 2022.
Staikouras said banks have significantly boosted their liquidity through an increase in deposits and by accessing capital markets.
"Let us be specific: Deposits are up...
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