Economics
Greek Banks Face ‘Gangs’ in Bad-Loans Battle With Defaulters
- Lenders said to boost sales of NPEs standing at half of total
- Investors fear Greek banks will need to raise more capital
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When Eurobank Ergasias SA, Greece’s third-biggest lender, recently went after a “strategic defaulter,” angry protesters stormed the courtroom to block its foreclosure attempt.
The defaulter, whose name the lender won’t disclose, had not serviced its loans for the last five years and owed the bank 4.85 million euros ($5.7 million). Over the same period, it had collected about 6 million euros in dividends from its 41 percent holding in a food company, showing, according to the bank, that it could honor its commitments.