At the same time, private equity firms’ strategies were characterised by growing shorttermism. Those developments pointed to an overheating in this market segment. After the outbreak of the turmoil, the flow of new LBOs came to a virtual standstill. The loss of liquidity in the credit markets made it difficult for banks to distribute the leveraged loans that they had originated.
Addressing long-standing issues regarding the tax treatment of loan impairment charges, both for borrowers and lenders. The Bank of Greece will adhere to its commitments, in particular regarding the modification of the Code of Conduct and the implementation of a framework for target-setting and monitoring the NPL management strategies of all Greek banks.