GREECE: Greece's National Bank says 2010, 2011 to be difficult., plans to ease loan conditions
Record ID:
560423
GREECE: Greece's National Bank says 2010, 2011 to be difficult., plans to ease loan conditions
- Title: GREECE: Greece's National Bank says 2010, 2011 to be difficult., plans to ease loan conditions
- Date: 22nd May 2010
- Summary: ATHENS, GREECE (MAY 21, 2010) (REUTERS) EXTERIOR OF NATIONAL BANK OF GREECE FLAGS BANK ENTRANCE NATIONAL BANK OF GREECE SHAREHOLDERS MEETING (SOUNDBITE) (Greek) NATIONAL BANK CEO, APOSTOLOS TAMVAKAKIS, SAYING: "It is expected that 2010 and 2011 will be especially difficult for the banking sector given the problems of the Greek economy. However, it should be noted that even in the current adverse situation, Greek banks are in good shape in terms of capital adequacy and liquidity." VARIOUS SHAREHOLDERS IN AUDIENCE (SOUNDBITE) (Greek) NATIONAL BANK CEO, APOSTOLOS TAMVAKAKIS, SAYING: "Banks are taking part in the battle to deal with the problems of the Greek economy. They are at the side of Greek homes and businesses who are trying to make it through today's difficulties. National bank is participating in this effort with the refinancing of loans, lowering costs, and special measures for customers who face a reduction in their disposable income, such as the measures for customers that are civil servants and pensioners." SHAREHOLDERS LISTENING
- Embargoed: 6th June 2010 13:00
- Keywords:
- Location: Greece
- Country: Greece
- Topics: Finance
- Reuters ID: LVA8GO19EBAV2LMXPOCQ26Q0DY9M
- Story Text: Greece's largest lender, National Bank, says this year and the next will be difficult for Greek banks and pledges to ease loan payments for customers to help with tough government economic austerity measures.
National Bank of Greece, Greece's largest lender, expects 2010 and 2011 to be difficult given the Greek economy's problems, but Greek banks are in good shape, its chief executive said on Friday (May 21) in an annual report to shareholders.
"It is expected that 2010 and 2011 will be especially difficult for the banking sector given the problems of the Greek economy. However, it should be noted that even in the current adverse situation, Greek banks are in good shape in terms of capital adequacy and liquidity," said bank CEO Apostolos Tamvakakis.
As Greece struggles under a debt crisis and tough economic reforms on the public, the National Bank announced it will ease loan repayments for civil servants and pensioners, the two sectors hardest hit by the government's economic austerity program, in order to provide some reprieve from the austerity and keep the economy circulating.
"Banks are taking part in the battle to deal with the problems of the Greek economy. They are at the side of Greek homes and businesses who are trying to make it through today's difficulties. National bank is participating in this effort with the refinancing of loans, lowering costs, and special measures for customers who face a reduction in their disposable income, such as the measures for customers that are civil servants and pensioners." said Tamvakakis.
Other banks are also following suit, to help keep borrowers in a position to make payments.
The Greek government has implemented harsh reforms in order to receive a financial aid package from the EU and IMF, that include reductions to civil service and pensioners wage bonuses and benefits, which will decrease their incomes.
Additional measures include increased taxes and freezes on hiring in the public service.
Analysts say the measures will hit consumption in the middle of the recession.
National Bank will restructure debt on consumer loans and mortgages and provide longer maturity on mortgages, extending the repayment of mortgage loans by as much as 12 years, which will reduce monthly payments.
Recession and a severe debt crisis which has boosted borrowing costs are taking a toll on major Greek banks, which hold large shares of Greek government bonds and have been downgraded by all three major rating agencies this year.
Greece's Its economy, about 2.5 percent of the euro zone is projected to contract by about 4 percent this year, increasing pressure on the sector.
Last month Greek banks asked the government for access to the remaining funds from a 28 billion euro ($34.76 billion) state support facility launched in 2008 to address tight liquidity conditions as a result of the debt crisis.
The government is looking at creating an independent fund to ensure bank equity levels remain sound, as part of the EU/IMF aid package. - Copyright Holder: REUTERS
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