Enria (ECB) for Greek banks: Good image for red loans but no complacency allowed

The Chairman of the Supervisory Board of the European Central Bank (ECB), Andre Enria, expressed his absolute satisfaction for the consolidation of the Greek systemic groups and the reduction of the delays at the current levels.

In a press conference he gave on the occasion of the completion of the supervisory control and evaluation process (SREP) of European banks for 2021, speaking about the Greek banking system, he described as happy the fact that the pandemic did not stop the progress on the red loans front.

As he characteristically said, we have left behind the culmination of the problem, emphasizing the concern he had about the issue a year and a half ago, especially for the countries that had previously been severely affected by the financial crisis in the last decade (Greece, Italy, Spain, Portugal, Ireland).

In these markets, Mr. Enria said, he saw the risk of a resurgence of the problem, but this did not happen.

He added, however, that the situation, despite the good image, does not allow for complacency. In this context, he called on the banks to address as drastically as possible the issues that may arise after the lifting of support measures for businesses and households, in order to avoid the possibility of creating a new generation of red loans.

As he said, credit institutions should study in depth the loans that came out of the suspension of payments, in order to classify them and handle them properly.