Opening Greek NPL market will speed up drop in bad loans

The opening of the Greek nonperforming loans market will accelerate the reduction of bad loans in the country, DBRS Morningstar said in a report published on Tuesday.

The rating agency added that the law introduced in December 2015 “has facilitated the entry to the Greek market of established NPL servicers, which marks a sea change in the way NPLs are treated,” and added that “the new approach to NPLs in Greece allows new entrants to the Greek servicing market to apply successful strategies from other jurisdictions. We expect to see similar positive results in Greece as in other eurozone NPL markets as a result.”