Greek Banking System

The government figures that due to the extension of “Iraklis” Greek banks will soon have a small share of unserviced loans – under 10 percent,

One such hot potato is banks’ non-performing loans (NPLs) and another is the Public Power Corporation (PPC).

The Bank of Greece rang the alarm bells over the danger of fiscal derailment due to Greece’s Council of State rulings which deemed unconstitutional earlier pension cuts and the abolition of holiday bonuses.

Many home loams were not serviced because debtors suffered dramatic cuts in their income or lost their jobs.

The report states that while progress was noted in Greece’s implementation of its post-bailout commitments, there are commitments that have yet to be met, most notably in the banking sector.

The country is at risk of not receiving the profits – amounting to approximately one billion euros - on Greek bonds held by the European Central Bank.

With the populist rhetoric that guided its thoughts and actions, the government engaged in a number of such clashes with reality, and reality won.

'What Mr. Dragasakis said in the context of parliamentary debate was skewed in order to stir a sensation,” said Tzanakopoulos.

Instead of confronting the burning issue of non-performing loans in a drastic manner, the government is testing the limits of the system with its policies

The government is indifferent to the fact that the chaos in Italy can lead to a new Greek tragedy. It is handling the banks with incredible shoddiness.