The Bank of Greece may create a “bad bank” to deal with non-performing loans, which are over a third of Greek banks’ total loan books.  

On July 16, the central bank included a proposal for an asset management company to deal with NPLs in its latest financial stability report. It says that addressing the existing large stock of NPLs is an immediate priority. Although Greece has managed to progressively reduce the ratio of NPLs held by financial institutions, this is likely to rise again as a