Support grows for Greece’s NPL plan

Author: Jimmie Franklin | Published: 28 Oct 2019

Support is growing for Greece’s newly-proposed asset protection scheme that the EU Commission has approved.

The Hercules Asset Protection Scheme (HAPS) intends to help banks offload up to 30 billion EUR in non-performing loans (NPLs).

Still suffering from the legacy of the financial crisis, Greece’s government intends to reduce NPLs – currently estimated at approximately €80 billion – to allow banks to lend and increase their profitability.

"This plan will allow us to present strong assets to the market for the first time in 10 years," said George Zavvos, Greek deputy finance minister and lead negotiator for the plan.

"Ultimately, it’s a systemic solution to the biggest backlog of NPLs in the eurozone," he continued, pointing out that it guarantees a clear up of around 40% of the NPLs. 

"Our understanding is that all systemic banks will join the Hercules scheme. My general message to banks is: get...