Bad Loans Legislation After ‘Complex’ Consultations Between Institutions and Greek Authorities

bad loans

Greece’s legislation on bad loans is a result of “complex” consultations between the institutions and the Greek Authorities, European Commission spokesman Margaritis Schinas said on Monday.

During a press briefing in Brussels, Schinas was asked to comment on reports according to which European Commission president Jean-Claude Juncker said that the transfer of loans to funds was a Greek proposal and not a prior action.

“The European Commission explained that the legislation recently adopted in Greece was the result of complex and detailed discussions with the Greek authorities,” Schinas underlined adding that the legislation “achieves a balance between the Greek authorities’ need for Greek banks to deal with high levels of non-performing loans and the establishment of a regulatory and supervisory framework for the servicing and sale of NPLs, with the participation of the Bank of Greece.”

“The Commission will continue to cooperate with the Greek authorities on the implementation of the strategy for the reduction of non-performing loans as part of the second programme review,” he stated.

Asked to comment on reports that the climate between the Greek authorities and the institutions is negative, he stressed that the Commission continues to cooperate with the Greek authorities on the implementation of the prior actions that will give the green light for the disbursement of the 2.8 billion euro sub-tranche.

Source: ANA-MPA


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