Greek bank association briefs Tsakalotos on targets regarding NPLs, bank deposits and credit growth

Reducing non-performing loans (NPLs) drastically by 38 percent in the next three years, accelerating the return of bank deposits and removing further the restrictions on capital movement are very important challenges which the Greek banking system will make every effort to tackle effectively and in a timely manner, the leadership of the Hellenic Bank Association (HBA) told Finance Minister Euclid Tsakalotos on Wednesday.

During the meeting, HBA, headed by its president Nikolaos Karamouzis, said other challenges include restoring positive credit growth – as demand is still limited – and the full utilization of new technologies.

The two sides discussed developments in the Greek banking system, the target to minimize NPLs and possible legislation that might help in this direction, including the out-of-court settlement of business loans, electronic auctions, tax regulations for writing off non-collectable debts, issues relating to liquidity and credit expansion, corporate governance, and preparing banks to adapt to the upcoming, international and European regulatory developments that will greatly affect the sector.