Bloomberg: Athens eyeing ‘bad bank’ to manage banks’ piles of NPLs; banking index recovers on Thur.

4 October 2018
59 Views

Bloomberg on Thursday – a day after “Black Wednesday” for the banking index at the Athens Stock Exchange – reported that Greek authorities are considering various initiatives to prevent a new sell-off of bank shares.

Bloomberg said one of the proposals eyes the creation of a special purpose vehicle to manage “bad debt” held by Greece’s systemic banks. Another dispatch by the same media provider a day earlier was cited by finance ministry sources in the evening as causing an “over-reaction” by investors.

The Tsipras government, according to the report, has promised to take necessary measures in cooperation with banks’ managements and the Hellenic Financial Stability Fund (HFSF), itself a special purpose vehicle created during the first memorandum (2010) to assist in the stabilization of the Greek banking sector.

Wednesday’s Bloomberg report, citing highly ambitious targets by Greek banks to reduce NPLs by up to 60 percent until 2021, was followed by a mass sell-off at the ASE of the credit institutions’ shares.

Just after noon (10.35 GMT) on Thursday in Athens, the banking index at the ASE was up by an impressive 8.8 percent.

You may be interested

Santorini volcano explosion dates changed: Piece of olive tree found on Thirasia changes everything
GREECE
shares20 views
GREECE
shares20 views

Santorini volcano explosion dates changed: Piece of olive tree found on Thirasia changes everything

makis - Oct 22, 2018

The dating of a piece of olive tree found on Thirasia will move the dating of the eruption of Santorini’s…

ELSTAT: The Greek debt is 176,1% of GDP…
FINANCE
shares12 views
FINANCE
shares12 views

ELSTAT: The Greek debt is 176,1% of GDP…

makis - Oct 22, 2018

The primary surplus of 2017 is marginally lower, according to ELSTAT’s latest data. ELSTAT revised the primary surplus of 2017…

Folegandros: Images of an undiscovered gem
GREECE
shares574 views
GREECE
shares574 views

Folegandros: Images of an undiscovered gem

Panos - Oct 22, 2018

Shining under the Aegean sun, Folégandros was named after the son of King Minos. This off-the-beaten-path destination captivates the visitors…

Leave a Comment

Your email address will not be published.