By N. Malliara
A looming resumption of auctions of foreclosed properties in the country along with pending sales of blocs of non-performing loans (NPLs) to distress funds within the first six months of the year are two developments that are widely anticipated as commencing a vigorous campaign by Greek banks to reduce their possession and exposure to “bad debt”.
According to reports, roughly 6 percent of non-performing exposures (NPEs) held by Greece’s four systemic banks are now in the “pipeline” for a permanent resolution.
At the same time, 33 percent of arrangements for NPLs are long-term in nature, with banking regulators encouraging banks to follow this route.
One method of resolving “bad debt” that has only recently emerged in the Greek banking sector, and seen as an alternative to auctions of foreclosed property, is the voluntary transfer of a mortgaged property to the lien-holding bank, according to reports.
