Thanks to the work that has been done over the past few years, we are fully aware of problems’ analytics and important knowledge has been accumulated both for the monitoring and managing of troubled assets. Moreover, as a recent Bank of Greece study indicates, domestic NPEs are primarily driven by recession.
This finding leads us to the inevitable conclusion that pro-active loan restructuring and immediate involvement of loan servicers and private equity funds (gaining from the upside in the EBITDA) may add value. The Bank of Greece’s key priority at present is to contribute towards a sustainable solution for the management of NPEs.