Greece: Banks. Servicers and the NPE's problem

Abstract

The purpose of this paper is to present all the determinants of non-performing exposures in Greece, as well as to present the cumulative solution of this problem through the strategic selection of securitizations. Non-performing exposures are a phenomenon that has a great influence on many sectors of a society, which makes its resolution an issue of major importance. Initially, there is a historical review of the causes of the birth of non-performing loans in Greece, which are located several years before the outbreak of crisis in the country. Then, there is the pick of non-performing loans during the crisis and the climate of pessimism that prevailed at that time, and then follows the presentation of the strategic choice of securitizations, as the most appropriate way to deal with them, judging by the result. Then, it presents a total record of all securitizations that have taken place in Greece, until December 2021. The main conclusions are, firstly, that securitizations gave the opportunity to Greek banks to take a deep breath and get rid of a very large volume of non-performing loans from their balance sheets, and secondly, the vital role of strategy nowadays in both the survival and growth of banks.

JEL classification: G20, G21, G28