17  Here, let me point out that, the exchange rate policy framework is anchored on strong performance and adequacy of the foreign exchange reserves, which have improved slightly from P53.4 billion or 10.1 months of import cover in December 2020 to P57.1 billion or 10.8 months of import cover in December 2021,  partly  due  to  recovery  in  domestic  economic  performance, as driven by improvement in external demand.
As far as the banking sector is concerned, the management of non-performing loans represents the most significant challenge as their stock has reached unprecedented levels, with the deterioration in asset quality being widespread. The Bank of Greece and the State have implemented a number of measures to address impediments in efficient NPL management.