Greece's Latest Drama Imperils Banks' Baby Steps Toward Recovery
- Banks beginning three-year workout plan for soured debt
- Creditor delegation arrives in Athens amid bailout tensions
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Since the last eruption of Greece’s long-running crisis in 2015, banks in Europe’s most troubled economy have shored up capital, staunched losses and set up a plan to reduce their mountains of bad debt.
Now, fresh tensions over the country’s bailout are putting that progress at risk. About 1.3 percent of deposits were pulled from the banks in January, while bad loans crept higher, an increase Bank of Greece Governor Yannis Stournaras blamed on borrowers using the deadlock with creditors as an excuse to avoid making their payments.