Greek banks to undergo new stress test this year

Meanwhile, the Bank of Greece recently decided over the procedures of auctioning assets owned by credit institutions currently under special liquidation. In a report to Parliament, the central bank offered details over the auction of assets and the strict supervision of management of non-performing loans.

The report noted that management of non-performing assets owned by banks under restructuring should be made in accordance with the best international practices.

The central bank said that in cooperation with Hellenic Financial Stability Fund it will assess – with the technical support of an independent party in agreement with the European Commission, the ECB and the IMF – the efficiency of management policy systems for non-performing assets. It will issue key performance indicators for loan portfolios including such assets along with actions needed by credit institutions to manage and restructure these portfolios.

The Bank of Greece will closely monitor the strategy, implementation and goals of credit institutions over their management of non-performing loans and will intervene – where necessary – to ensure that borrowers are offered timely and viable alternative plans to service their loans.

The central bank also said that credit institutions are obliged to report on a monthly basis over the results of the efficiency of these programs.

source: ΑΜΝΑ