Greece Update – Half Of All Mortgages In Arrears

A startling headline in the Greek press today claiming half of all mortgages in Greece are in arrears.

And remember, the worst is over…..

Actions to stem the “tide” of non-performing loans (so-called red-loans) asked the governor of the Bank of Greece, G. Provopoulos to take the heads of four systemic banks, in their current meeting.Situation is now bursting, and -reportedly-only mortgages, nearly one in two loans have been placed under the regulation. It is estimated that the number of mortgage loans is set in the range 500,000 to 600,000 loans. Borrowers who are at risk of losing their home if they released the system of auctioning calculated at 60,000. However, of concern is the speed with which daily new borrowers entering the “gray” zone. It is estimated that about 50000 to 60000 lagging loans greater than 90 days. The “antidote” proposed, according to reports, Mr. Provopoulos bankers to address this situation, which becomes even more pressing if you add the “red” consumer loans and those of business is to create a centralized management of problem loans. recommended not to upgrade the existing addresses delays have credit institutions. As defined by the Memorandum, the four banks were invited to submit further plans for the management of ‘red’ loans which will be referred to, except for actions to be taken, the timetable will follow. Discussion was even on the issue of operating cost at which highlighted the progress made ​​in this area, with its reduction by 20% over the last five years at group level. In regard to the presence of Greek banks in eastern Europe, which Mr. Provopoulos featured particularly important, however, pointed out on several occasions, each bank has a small market share, so you should not exploit economies of scale. That is why I asked the bankers to consider possible collaborations, mergers, exchanges their subsidiaries abroad. SOURCE: imerisia.gr

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