BANKS

Expectations for a return to normalcy, following the positive developments on the vaccine front. The faster return of economies to normalcy will allow for more efficient management of loans where payments have been temporary frozen on debt reaching 20 billion euros.

All indications are that SSM will not allow for the repayment of the 165 million euros, triggering the conversion of the CoCos into shares.

Τhe sharp drop in share price and shrinking of the bank's market capitalization to 283 million euros has raised concerns about the transmission of the crisis to other banks.

Developments seem to be accelerating after a group of shareholders announced their proposal for a share capital hike at the bank, accompanied by a series of terms and conditions that make its implementation difficult.

Of the 600 million euros recovered by PQH, around 226 million euros was the result of settlements and loan restructurings, while about 54 million euros was recovered from the liquidation of real estate.

The draft law was submitted to parliament late last night. It will then be discussed in the relevant parliamentary committees and then put to a vote in plenary at the end of the week.

As the head of the ECB pointed out, discussions have progressed significantly in both the European Commission and the ECB on the establishment of Asset Management Companies (AMCs) at national level, but also on the strengthening of AMCs in countries where they already exist. Asked about the Bank of Greece’s, Lagarde referred the issue to BoG Governor, Yiannis Stournaras.

Sources told Business Daily, many objections and concerns are being expressed by investors about the business plan presented, both in terms of the amount of returns for investors, which the government estimates will be around 5 percent, and whether it will be able to operate with private financial criteria and proceed with evictions of vulnerable borrowers who do not pay their rent.

The banks' views are expected to be supported by a special study, which will show the potential impact and the risk of creating new wave of bad debt from the new bankruptcy code.

The banking sector, due to concerns about the long-term effects of the crisis on the quality of their portfolios, has come under stronger pressure in Europe and the US. In Europe, the banking index has fallen since the beginning of the year by about 27% against a fall of 12% of the pan-European Euroxx 600 index, while in the US the banking sector has fallen by 20% versus a rise of 5.2% in the S&P 500.