BoG Dep. Gov stresses more radical steps by Greek banks to reduce NPLs, continue recovery

Deputy Bank of Greece (BoG) Gov. Theodoros Mitrakos this week detailed the initiatives that Greece's four thrice-recapitalized systemic banks must accelerate in order to keep the country's fragile credit system on its recovery course.

"(Greek) banks are obliged to immediately increase packages that include solutions for (distressed) borrowers, and to take more radical decisions, especially as far as restructuring (the lending obligations of) viable businesses," he told "N" in an interview this week.

Additionally, the Greek central bank's "No. 2" official, said Greek banks must also deal in a coordinated manner with borrowers owing debts to multiple creditors, while also detecting so-called "strategic defaulters".

At the same time, Mitrakos warned that creditor banks must protect the Greece's still crisis-battered economy and job spots, and not emphasize the collection of their demands.

Among others, he referred to a "comprehensive management of debts with a socially sensitive manner."

He also said the first discussions for the creation of a "bad bank" in Greece is a positive development.