Banks Concerned About January’s Spike in Non-performing loans

Banks are becoming increasingly concerned about Greece’s sudden rise in new bad loans since Janauary of this year.

Banks sources have reported that the spike in January contrasts drastically the path that financial institutions thought the country’s non-performing loans (NPLs) were headed down after several months of stabilization and of a negative growth rate in new non-performing exposure. However, the new amount of bad loans in January totaled some 800 million euros, according to the same sources.

Local lenders are quite concerned with this turn of events as it makes reaching the targets put forth by for the bailout review by the Single Supervisory Mechanism (SSM) of the European Central Bank for the first quarter of this year more difficult.

Completing the bailout is a top priority for banks and recently talks of a possible Grexit from the EU have resurfaced, making the banking sector uneasy as well as causing people to opt to not pay their bank dues in anticipation of yet another renegotiation.