Bank of Greece Gov. Yannis Stournaras referred to the pressing issue non-performing loans (NPLs), in an address this week to the to the National Bank of Croatia, speaking on the subject of financial sector stability.
Bank of Greece Gov. Yannis Stournaras referred to the pressing issue non-performing loans (NPLs), in an address this week to the to the National Bank of Croatia, speaking on the subject of financial sector stability.
Stournaras said the Greek central bank is now in a better position to monitor and manage NPLs situation, adding that the course of NPLs is primarily affected by the recession, therefore, increased capital demands are not always the best solution and may, often times, prove to be an ineffective measure.
Stournaras told an audience in Zagreb that the most effective solution is the restructuring of loans in the private sector, along with improvements in the bankruptcy law, speeding up whatever court proceedings and allowing the participation of private equity funds in the NPLs sector, “which have the know how in restructuring economic sectors”.