Banks could save billions acting quick

Banks could obtain a benefit of 7 billion euros from the acceleration of judicial procedures and of the liquidation of collateral regarding nonperforming loans – which typically are real estate properties – according to a Bank of Greece report on the Greek credit system issued on Tuesday.

The report records the increase in banks’ nonperforming exposures in the first quarter of the year, which it attributes to the reduction in the total balance of loans and the increased uncertainty due to the extended negotiations on the second bailout review.

BoG data showed that some 88 percent of collateral concerns real estate assets, half of which concern private homes and 34 percent commercial and industrial properties. The report adds that the value of collateral diminishes as long as liquidation time grows.

Meanwhile the head of the Hellenic Financial Stability Fund, Giorgos Michelis, tendered his resignation on Tuesday, citing personal reasons. He will remain at his post until a replacement is appointed by the finance minister, the HFSF announced.