New strategy proposed for over-indebted company overhauls

28 August 2016
25 Views

New measures are being proposed for banks to take control of businesses when their borrowing exceeds acceptable levels as a means of accelerating the restructuring of firms.

The measures, already implemented or under debate in larger economies such as those of the UK, Germany, France or Spain, are being proposed in order to solve the problem of shareholders of over-indebted companies who, though refusing to invest fresh money in their businesses, raise obstacles against selling or restructuring them.

Sources close to the discussion explain that international accounting standards are being applied as the benchmark for evaluation these companies in order to avoid controversy.

The problem of such firms, which account for 44.6 percent of non-performing loans, will be the focus of talks with Greece’s international lenders in the immediate future, pushing for more efficient management of the problem.

According to data from the Bank of Greece, the most indebted sectors are agriculture, with non-performing loans at 58.8 percent, commercial real estate at 54.6 percent, tourism at 53.8 percent, construction at 52.5 percent, manufacturing at 51.7 percent and trade at 48.5 percent.

You may be interested

EU: Older Refugees Stranded in Greece
GREECE
shares2 views
GREECE
shares2 views

EU: Older Refugees Stranded in Greece

Panos - May 23, 2017

Unnecessary delays and arbitrary barriers are keeping older refugees and asylum seekers stranded in Greece, unable to reunite with family…

19 dead in terrorist attack at Ariana Grande Manchester concert
WORLD
shares31 views
WORLD
shares31 views

19 dead in terrorist attack at Ariana Grande Manchester concert

Panos - May 23, 2017

Nineteen people have been killed and more than 50 injured in a suspected terror attack at Manchester Arena. The blast…

Russian-Greek investor Savvidis buys 20% stake of nationwide TV channel
FINANCE
shares25 views
FINANCE
shares25 views

Russian-Greek investor Savvidis buys 20% stake of nationwide TV channel

Panos - May 23, 2017

Russian-Greek investor Ivan Savvidis has purchased 19.63 percent of the shares in the troubled Athens-based Teletypos, the owner of the…

Leave a Comment

Your email address will not be published.