Greece Seeks European Commission’s Assent for Bank Plan, Sources Say
- Country’s banks grappling with 88.6 billion euros of bad loans
- Government proposing Italian-style model to put loans in SPV
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Greece’s government submitted to the European Commission a plan to help the country’s banks speed up their bad-loan disposals, in a bid to restore confidence in the battered sector, according to two people familiar with the matter.
Greek banks are grappling with 88.6 billion euros ($100 billion) of bad loans, a legacy of the country’s financial crisis. That constrains their ability to provide credit to businesses and households and risks crimping growth as the economic recovery looks to be gaining momentum.