GreekReporter.com Greek News Economy Moody's: Reduction of NPLs 'Credit Positive' for Greek Banks

Moody's: Reduction of NPLs 'Credit Positive' for Greek Banks

moodys722015On Monday Moody’s said that a reduction of non-performing loans and of operating spending by Greek banks was a “credit positive” move for banks.
In its Moody’s Credit Outlook, the credit rating agency said that the four largest Greek banks reported their second quarter results at the end of August, which showed a decline in the formation of new NPLs, after a significant slowdown in the previous two quarters.
This development, combined with a reduced spending base, is “credit positive” although bad loan provisions continued to absorb a big part of pre-provision earnings, Moody’s said.
Lower NPLs and a smaller spending base will help banks to return to profitability, after big losses suffered in the last few years, Moody’s noted, adding it expected the percentage of NPEs to improved with a delay of at least one year compared to NPLs.
The credit rating agency stressed that the sale of loan portfolios will play a critical role in lessening the burden of NPLs on Greek banks’ balance sheets and said that participation of foreign funds in such transactions depend on the Greek government’s ability to successfully complete the reviews of the Greek bailout program in a timely manner.
Source: ANA-MPA


Related Posts

Alexandra Echavarri Releases First Single: ‘Round and Round’

A good and old friend of Greece, the Puerto Rican artist Alexandra Echavarri released her first single entitled “Round and Round” recently.

Impressed by Greece, Amazon Expands Further in Athens

Impressed by the entrepreneurial environment in Greece, US giant Amazon announced that they will soon open their first office in Athens.

San Franscisco to Honor 200th Anniversary of Greek War of Independence

The San Francisco City Hall will be illuminated with the colors of the Greek flag on March 25, on the 200th Anniversary of the 1821 Greek War of Independence.