The Greek bankers, taking into account the initial data from the loan payments, point out the danger that the coronavirus crisis will turn into a banking crisis and then into a new financial crisis.
New non-performing loan inflows increased threefold since February, completely changing the positive course of last year, with a formation of new non-performing loans.
According to the bankers, this increase is not entirely justified by the coronavirus crisis and the restrictive measures that affect economic activity after the lockdown of the last three weeks, as banks find that the large mass of borrowers who were cooperative before the crisis, continue to do so.
In contrast, those who ignored payments as a strategy began to do so again. At the same time, those who had not settled their non-performing loans are now hiding behind the coronavirus crisis and are not discussing regulation.
The banks point out that the borrowers must understand that the supportive measures taken by the government are temporary and directed only to those who are really affected by the spread of the pandemic crisis.
Support measures by the government must also be weighed day by day and their duration must not be announced in advance. All of the above is necessary for the government and banks to work together to achieve the major goal: to support sustainable businesses at risk of being “wiped out” by a natural disaster, such as a pandemic, and to fund them the day after the crisis.
Original Source: Capital
Adaptation/Summary: Kiki Athanasiadis