International Financial Reporting Standards

Next week will see the country's systemic banks start to release their financial results for 2017, which will be of particular interest given that they will incorporate the additional provisions in the context of the new international financial reporting standards (IFRS 9).

Greece's four systemic banks will make additional provisions totaling between 5 and 6 billion euros for the 2017 financial year in the context of adopting the new financial reporting standard IFRS 9. These provisions will directly burden the lenders' capital and will not have an impact on their financial results.

Local banks' stocks came under great pressure over the week, as investors remain nervous about the medium-term future of the country's credit system.

The application of the new accounting standard, the IFRS 9, will cost the Greek systemic banks some 7.6 billion euros according to Morgan Stanley, due to the additional provisions it will entail.

The Morgan Stanley report notes that the impact on Greek lenders is one of the highest among European banks.

State corporations going under the purview of Greece's privatizations hyperfund will undergo sweeping changes in management and regulations.

The European Central Bank's stress test of Greek banks is still expected to be finalized in May, despite a delay in the Europe-wide exercise, a source familiar with the situation told Reuters on Thursday.

BELGRADE - The National Bank of Serbia (NBS) announced on Monday that it will launch an initiative aimed at improving the framework for resolving the issues of problematic banks, and taking action with a view to solving the issue of the high level of problematic loans.