More than 800 thousand loans have been rescheduled due to the decline in income
The Greek financial system worsened dramatically after the haircut of
the face value of Greek government bonds. Banks’ balance sheets noted
serious deficiencies when the bonds they hold as assets lost 50% of
their value in the PSI process. The reduction of pensions and wages and
increased unemployment have put a large number of payers in a very
difficult position and they started to experience difficulties or ceased
repaying their monthly obligations to financial institutions. By August
2012, the loans "in the red" reached 17.2% or 77 billion euro and one
out of every three consumer loans was not serviced. Meanwhile, more than
70 billion euro in deposits have been withdrawn from the country in the
last three years since 2009.
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