Always the banking system was the engine of economic growth. Today it is trapped in a state of introversion, because of the problems inherited from the financial crisis, which deprives him of his main destination. The financial staff of the government, attempts to mitigate as far as possible the effects of the crisis, both economic and epidemiological, on the banks, so that they can return to the economy healthy and strong.
Finance Minister, Christos Staikouras and the wider economic staff are well aware that recovery with a weak banking system cannot exist. For this reason, they are doing everything possible to give the system the necessary breathing space and get it working again on a new, healthier basis. Of course, this does not mean that the government has ceased to make demands on the banking system, believing that they, too, should look at the conditions prevailing in the economy and be able to act accordingly.
On Thursday, March 18, for example, the Finance Minister, speaking at an event, referred to the need for banks to become again a lever for the recovery of economic activity and the activation of the country's productive forces. He did not fail to mention the the need for effective management of red loans, saying that it is of paramount importance for the economy to resolve the issue, which is worsening due to the pressure on the real economy as a result of the health crisis and the restrictive measures taken.
He noted that «the development and implementation of an integrated and coherent strategy is therefore required in order to tackle the problem dynamically and effectively». Particular reference was made to the fact that as of June 2019, a significant contraction of 30% in total NPLs has been achieved, which amounts to EUR 47 billion in December 2020.
He also noted that «this is a great success of the Greek economy, which is recognised internationally. Of course, private debt remains high, due to the transfer of loans to entities outside the banking system,» the Finance Minister said, citing the Finance Ministry's moves to reduce non-performing loans.
Particular reference was made to project «Hercules», which, as the Minister said, is a comprehensive systemic solution, which was passed at the end of 2019, and which has led to significant, positive results. All systemic banks have already joined it, attracting international investors, with a total gross securitisation value of EUR 31.3 billion.
