Credit

Only healthy and consistent enterprises will have access to the state-guaranteed working capital funded by commercial banks and the Guarantee Fund.

The Bank of Greece is working on a plan for the creation of a "bad bank" to which all nonperforming loans (NPLs) of banks will be transferred. The central bank intends to present the plan to the banks, the government and the European Central Bank's Single Supervisory Mechanism (SSM) by end-May.

The coronavirus pandemic will result in a new wave of nonperforming loans that could reach up to 10 billion euros, an online debate on bad loans heard on Wednesday. Most of them are expected to originate from the sum of recently rearranged loans that will turn nonperforming again.

EU countries will soon be able to grant subordinated debt to prop up virus-hit economies, people familiar with the matter said on Saturday, as state aid regulators once again loosened rules to make it easier for companies get state support.

The Greek Parliament's approval of the Hercules asset protection scheme should accelerate Greek banks' sales of nonperforming loans (NPLs) and bring exposure down further, to 20 percent, within the next two years, S&P Global Ratings said in a report published late on Thursday.

The opening of the Greek nonperforming loans market will accelerate the reduction of bad loans in the country, DBRS Morningstar said in a report published on Tuesday.

The new bankruptcy code will provide for the main residences of bankrupt borrowers considered financially vulnerable to be transferred to a state entity and leased back to the original owners. This will replace the existing framework for the protection of debtors' main residence from repossession.

Turkish state-owned lenders have created an extra credit volume of 27.5 billion Turkish Liras (about $4 billion) in the last 10 days, the head of the country's banking watchdog has said, criticizing the private banks for the contraction of their credit pool some 5 billion liras ($737.2 million) in the same period.

The Greek credit system is faced with a double challenge in tackling the economic crisis caused by the coronavirus pandemic: Besides managing the new generation of bad loans, the banks will have to serve as the catalyst for the economy's emergence from the crisis, channeling the necessary cash flow into the market.

This year was meant to mark a turning point for Greek and Italian banks as they finally laid the ghosts of the financial crisis to rest. Then the coronavirus struck.