The government will submit to Parliament in September a new payment schedule for debts to the state incurred during the coronavirus pandemic.
These new debts will be paid either in 12 interest-free installments in 2021 or 24 low-interest installments. The amount of unpaid taxes and previous debt settlements that froze during the period from March to May exceeds €2 billion.
Piraeus Bank has applied to the Hercules asset protection scheme that aims to reduce banks' exposure to nonperforming loans through their securitization.
The application concerns the securitization of Phoenix, a €1.9 billion portfolio of housing loans.
Piraeus' application leaves National Bank as the last of the "big four" Greek retail banks that has not applied to the scheme.
As of June 15, banks had granted loans to the amount of 4 billion lei under the IMM Invest programme, and this week the one billion euro equivalent mark will be passed, Cristian Paun, chairman of the Board of Directors of the National Credit Guarantee Fund for Small and Medium-Sized Enterprises SA - IFN (FNGCIMM SA - IFN), said on Wednesday.
Loan managers are reporting an improvement in repayments in May, after the debt servicing delays recorded in the second half of March and the whole month of April. The restoration of payment flows signals a gradual return to normality, said Anastasios Panoussis, chief executive officer at Eurobank FPS and head of the Association of Loan Managers, at SmithNovak's European conference.