More ambitious NPE cutting targets for Greek banks

Kathimerini understands Greek banks have made a pledge to the European Central Bank's Single Supervisory Mechanism that they will cut their nonperforming exposures (NPEs) to 17-22 percent of their portfolios by 2021, compared to today's highs of 43-54 percent.

The ambitious new targets of Alpha, National, Eurobank and Piraeus point to the reduction of NPEs from 88.6 billion euros for the entire credit sector in Greece at the end of June to some 35-40 billion at the end of 2021.

That would constitute a reduction of 55 percent or 45 billion euros, which is seen being achieved through mass sales and the securitization of loan portfolios, asset auctions and sales of large packages of real estate properties, generous settlements with borrowers and write-offs, thus streamlining banks' financial reports.

The new targets have been approved by the banks' governing boards...