It should also be noted that the implementation of such an initiative would benefit the sector by correcting what is currently perceived as a large share of DTCs in capital adequacy ratios, while it would allow banks to access market opportunities through a different investment case.
The main elements and characteristics of the Bank of Greece proposal are as follows: The proposed scheme envisages the transfer of a significant part of non-performing loans (NPLs) along with part of the deferred tax credits (DTCs), which are booked on the banks’ balance sheets, to a number of Special Purpose Vehicles (SPVs).