Non-Performing Loans

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.

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

Eurobank is trying to craft its own solution to the looming problem, while the Greek government is focused on a national approach to expediting the resolution of NPLs.

The government attempted to persuade public opinion that the auctions involve only debtors who are able to pay but do not, and that the properties being auctioned off are all villas and mansions.

That reality of daily auctions of foreclosed properties was not what SYRIZA and the Independent Greeks were promising before they came to power.