Credit risk management conference in Athens

The need to ensure a stable economic environment, encouraging new business investments, the successful and immediate capitalization of banks, efficient management of non-performing loans and the significance of liquidity and credit risk were the issues in the agenda of a Credit Risk Management conference organized by ICAP late last week.

Addressing the conference, Nikitas Constantellos, chairman and CEO of ICAP Group, said that during the economic crisis, the balance between new set-ups and delisting of enterprises moved downwards, but in 2015 the trend changed with enterprises returning to profitability for the first time. This trend continued in 2016.

Constantellos also referred to the lack of refinancing and credit in 2015, which led to an increase in short-term debt. The majority of enterprises (73 pct) continue paying their debt with delay, up from 70 pct in 2016, while a 20 pct repays its debt with a delay of more than 60 days. He noted that small enterprises were more vulnerable compared with large enterprises with the gap between them growing larger as the vast majority of enterprises remained in the high credit risk zone, although showing steady signs of improvement. Constantellos came to the conclusion that an improvement of financial results could be continued in 2017 on the precondition of safeguarding a stable economic environment, encouraging business investments, facing NPLs and completing a third review of the Greek programme on time.

Professor Plutarhos Sakellaris analyzed the ways to restoring the Greek economy, such as improvement of technologies and the necessity of redistribution of Greek sources.

Nontas Nikolaidis, Vice President-Senior Credit Officer Moody’s, analyzed Moody’s credit rating methodolody and its implementation on Greek banks. He also focused on reducing Non Performing Exposures and said that despite significant improvements in funding, liquidity remained limited as capital controls remained in the country and predicted that profits in the 2017-2018 period will be marginal.