Piraeus Bank General Manager: Greek banks will use various tools to reduce NPLs

The goal to reduce the accumulated non-performing loans in Greek banks will be achieved through various debt policies, the General Manager of Piraeus Bank’s Group Recovery Banking Unit, Evangelos Kavvalos said on Thursday, during a speech at a conference organized by the Hellenic Management Association (EEDE).

Kavvalos said NPLs will decrease 35-40 percent through debt adjustment schemes, 30 percent through debt sales, write offs, haircuts, 15 percent through foreclosure auctions, 10 percent through debt recovery and amortization and 5 percent through improvement of some loans.

According to the plans submitted to domestic and EU authorities, Greek banks have pledged to reduce their NPLs (mortgage, consumer and business loans) totaling 108 billion euros by about 40 percent by 2019.

The process will be monitored by the relevant regulators on a monthly basis he added.