Handelsblatt: Greek banks are threatened by new non-performing loans

The Düsseldorf financial newspaper Handelsblatt hosts an article entitled “The old risk is coming back: Greek banks are threatened with new non-performing loans”.

The newspaper notes: “After the public debt crisis, the four systemic financial institutions Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank had to face a mountain of bad loans. Now there are new upheavals in the industry. The war in Ukraine and the sharp rise in energy costs could mean that many loans will no longer be serviced.

Non-performing loans could further weaken the already structurally problematic capitalization of banks… Even before the start of the war in Ukraine, many borrowers could not service their loans, the Central Bank points out. Now the extreme rise in energy costs and the weakened economic growth could lead to a new insolvency.”