The management of non-performing loans is the key for the sustainable revival of the banking sector and the economy in general, according to bank executives.
The same executives estimated that banks will meet the target for the reduction of non-performing loans in 2017-2019 as serious work has been done based on a series of initiatives taken by the Hellenic Bank Association.
The necessary legal framework for the management of NPLs and NPEs is eventually being developed after many years, they said and cited the example of selling loans to secondary market, electronic auctions, the out-of-court debt settlement mechanism, the new bankruptcy code and licensing companies for the management of non-performing loans. However, they also stressed the need for improvements on other sectors.
Moreover, they underlined that the procedure will take time as cautious steps will be taken to protect people facing serious problems.