BoG says proposed Greek ‘bad bank’ would cost five billion euros

Prospects for creating a “Bad Bank” in Greece as part of efforts to tackle nearly 100 billion euros in non-performing loans (NPLs), as well as the cost for such an initiative, tapped at roughly five billion euros, were highlighted in the 2017 annual report provided by Bank of Greece (BoG) Gov. Yannis Stournaras on Monday.

At the same time, the central bank offered a forecast of four to five billion euros – over a five-year time span – in additional provisions by Greece’s four systemic banks due to the implementation of the IFRS9 standards.