Foreign investors irked over Greek banks’ NPLs
Greek and foreign shareholders are expressing their strong aversion to the course of Greece’s four systemic banks’ stocks in the first nine months of 2016, as losses start from 30 percent and reach as much as 53 percent.
During the stock market’s roadshow in London a few days ago, Greek bank officials were peppered with questions by foreign investors over the fact that two months before an entire year comes to an end since the credit sector’s recapitalization (last November), the reduction of nonperforming loans has not yet proceeded.
Banks responded to criticism by saying nothing has been done on the legislative front in 10 months, as there is no institutional framework nor has any loan management company been granted a permit. Furthermore, some of those banks are still without permanent management; instead they are waiting for selections that have to be approved by the European Central Bank’s Single Supervisory Mechanism, the foreign stakeholders and the government.
All this uncertainty is reflected in the stock prices of National, Piraeus, Alpha and Eurobank, while the Greek bourse remains off the radar of investors owing to a great extent to this negative background.
