Νon-performing loans

Νon-performing loans

As a result of the economic downturn, for several years the banks have been faced with a large volume of non-performing loans. Despite the efforts that have been made at times, an important constraint has not yet been made possible. A characteristic example is the studies of the Bank of Greece, which from 2018 predicted a reduction of non-performing loans from 73 billion euros to 39 billion euros in 2019. Unfortunately, these forecasts have not been confirmed, with the result that the amount of non-performing loans remains stable. Recently, and with the change of government, the project “Hercules”, a government guarantee program, has come to the news, which will reduce “red” loans amounting to EUR 30 billion. It followed the Italian state guarantee program for “red” bank loans, made known by the abbreviation ‘Gacs’. In Italy, State guarantees were granted against the supply of non-performing loans with a lower solvency ratio. In Greece, only the bonds of securitified loans with a comparatively solid credit rating will be guaranteed. In addition to the plan, banks participate in the first residence protection programmed, as foreseen in the N. 4605/2019 in collaboration with the EPO, which “runs” electronically through the platform  http://www. keyd. gov. gr/.  Wise Advice   has the necessary know-how to support the submission of the request. At the same time, even for loans that do not fall under the procedures of the above law, the banks have made a general invitation to regulate with characteristic publications in the press. And in such cases, as Ombudsman, Wise Advice offers the necessary support to Negotiations with the banks. In addition, before the start of the negotiations, the feasibility study is prepared on behalf of its customers so that any proposal to the banks is considered to be documented.


  • Date: December 17, 2019