Government and representatives of the banking sector agreed on management of non-performing loans

The government’s economic team on Wednesday met with representatives of the banking sector and discussed the course of the economy and the conditions in the domestic banking sector.

The two sides agreed, as stated in an announcement issued by the government’s vice-presidency, that banks – following a timely and successful recapitalization exercise – were in a position to successfully deal with any turbulence in international markets. The meeting also noted that banks have no interest in selling their loan portfolios and agreed that domestic banks must accelerate procedures to deal with non-performing loans based on existing new legislation.

The two sides also agreed on the negotiating line on the issue of managing non-performing loans and particularly exempting specific loan categories from being sold to third parties. The government’s economic team agreed with bank officials to set up of joint commission to examine issues such as cutting charges on e-transactions, contributing in a combat against tax evasion and exchanging information.

The meeting was chaired by government vice-president Yiannis Dragasakis, Economy Minister George Stathakis, Finance Minister Euclid Tsakalotos, the leadership of Hellenic Bank Union and the managements of domestic banks.