Bank of Greece governor: “An important step forward”
Greece’s banks have reduced their NPL ratio by 25 percent over the past two and a half years, says Yannis Stournaras. In an interview with the German newspaper Handelsblatt the governor of the Bank of Greece talks in detail about the monetary policy in the euro zone and the current state of Greece’s banks. Yannis Stournaras…
…about Mario Draghi’s successor: “Mario Draghi’s ‘Whatever it takes’ is a very positive legacy for his successor. We should not forget that the architecture of the euro zone is still incomplete – despite the considerable progress made in recent years. Therefore, the ECB and its President should do everything necessary when a new crisis breaks out. I do not expect such a crisis, but we should be vigilant and always well prepared.
…on Greece’s structural reforms: “Under the three adjustment programs, Greece has implemented far-reaching structural reforms since March 2010, including a comprehensive privatisation program. This is an ongoing process that continues to be closely monitored by creditor institutions.”
…about the NPL portfolio of Greek banks: “The banks have reduced the portfolio of non-performing loans by 25 percent over the past two and a half years. That really was an important step forward. But the ratio is still over 40 percent.”
…on further measures to reduce NPLs: “In November 2018, we, the central bank, presented a concrete proposal aimed at significantly reducing the number of non-performing loans. It contains a conversion of existing deferred tax credits, which the banks now credit to their equity. The implementation of the plan will radically improve banks’ asset structures and liquidity and generate revenues.
Read here in full (in German)