New strategy proposed for over-indebted company overhauls

28 August 2016
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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.

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