Financial crises

Eurobank seeks to join Greece's bad loan scheme with third securitisation

Eurobank applied to take part in Greece's Hercules bad loan reduction scheme with a third securitisation, dubbed Cairo-III, the country's third-largest bank said on Friday.

Banks in Greece have been working to reduce a pile of about 75 billion euros in bad loans, a legacy of a financial crisis that shrank the country's economy by a quarter.

A moral clause

The decision to exclude from state loan guarantees any enterprises that had outstanding debts before the coronavirus crisis, or had been funded through a state guarantee but became insolvent, was a necessary one.

The rule will ensure that strategic defaulters will not seek to take advantage of the crisis.

Further debt easing may come later, economists tell Kathimerini

Estimates pointing to a deep recession in Greece this year and a steep rise in the national debt as a result of measures to contain the coronavirus pandemic are generating questions about what will happen once the crisis subsides and raising new debt sustainability concerns. Economists asked by Kathimerini stress that Greece is armed with weapons it did not have before.

Greek economy expected to shrink by 5-10 pct this year, says finance minister

The Greek economy, hit by coronavirus restrictions, is expected to shrink by 5-10 percent this year, the country's finance minister said on Saturday.

"It seems we have been settling at a range of between 5 and 10 percentage points," Finance Minister Christos Staikouras told Open television station.