Piraeus Bank releases survey on non-viable enterprises

If non-viable enterprises could operate under the terms of viable enterprises, their operating profits (and the added value of the Greek economy) could be raised by 2.6 billion euros annually and the turnover in the economy could be higher by 16.7 billion euros, Piraeus Bank said in a survey released on Wednesday.

The survey by Elias Lekkos, head economist in Piraeus Bank and his partner Eve Vlachou, analyzing the possible benefits of restructuring around one-third of non-viable Greek enterprises, said that a significant part of currently non-performing loans worth 15.9 billion euros could be well-performed, significantly contributing to the reduction of non-performing exposure in the Greek economy.

The survey showed that non-viable enterprises accounted for 7.1 pct of the survey’s sample in 2016, of which 8.2 pct were very small enterprises, 6.0 pct were medium-sized enterprises, 5.2 pct were small enterprises and 4.4 pct were large enterprises.

Non-viable enterprises have an accumulated productive power of 28.4 billion euros, or 16.3 pct of the country’s GDP, while accumulated debt reached 23.5 pct with annual financial spending of 613 million. Accumulated EBITDA were -413 million euros, pre-tax results showed a loss of 1.3 billion euros and EBITDA margin was -10.3 pct.

The survey noted that any turnaround of currently non-viable enterprises should be related with a significant haircut, estimated at 7.6 billion euros or 32.3 pct of total accumulated debt.