Greek bankers estimate that the amount of non performing loans created in the first two months of 2015 amount to 2 billion euros.This is twice the amount of new bad loans created in the last two months of 2014, figures showed.
After several months of decline in the Greek credit sector’s creation rate of new bad loans, banks are reporting a sudden rebound in growth rate for January and February 2015, according to Greek newspaper “Kathimerini.” The rise of non performing loans is attributed to political instability in Greece, analysts said.
This came as Greek banks are set to suffer an extra burden adding up to some 1 billion euros from the rise in the cost of liquidity owing to the shift from European Central Bank (ECB) funding to Bank of Greece’s Emergency Liquidity Assistance (ELA) mechanism. ECB lends cash at an interest rate of 0.05% while the latter supplies cash to Greek banks at a rate of 1.55%.
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