Greece reveals deferred tax wheeze for NPLs
On Thursday, the Bank of Greece revealed plans to manage the banking sector’s non-performing loans through securitizing them in a vehicle capitalised by the banks’ deferred tax credits (DTCs) — the latest move to speed up the push to clean up lenders’ balance sheets in the country.
The central bank says that its proposal would “bring about a direct and drastic reduction” in NPL ratios and would allow banks to aim for a ratio of NPLs in the single digits within the next two to three years, under the right conditions.It also says its plan ...
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