Statement on Greek Banking System
IMF News, September 28, 2017
Source details
- Canonical URL
- Statement on Greek Banking System
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Bibliographic details
- Published: September 28, 2017
Key message
- Press Release No. 17/376
- Date: September 28, 2017
- Mr. Poul Thomsen, Director of the European Department, made a statement at the FT Investment Management Summit in London.
- Core quote: "On the subject of the Greek banking system, let me emphasize that we see no financial stability concerns at all in Greece. The issue is that we need to be sure that there is a strategy to deal with Greece's exceptionally high level of nonperforming loans over the medium term."
Nonperforming loans and strategy
- Identified issue: "Greece's exceptionally high level of nonperforming loans over the medium term."
- Policy objective: ensure there is a strategy to deal with this high level of nonperforming loans.
Asset quality review (AQR) and ECB proposal
- IMF suggestion: update the 2015 asset quality review (AQR) by next spring.
- ECB proposal: bring forward the already scheduled stress tests and undertake targeted asset reviews.
- IMF assessment of ECB proposal: "We think that this is a constructive proposal that achieves the same broad objectives, and we are now discussing the exact modalities with our colleagues at the ECB."
- Rationale given: targeted asset reviews together with earlier stress tests "will allow us to gather the information necessary to assess whether the current strategy for ensuring the soundness of the banking system is adequate, without having to go through a full asset quality review."
Next steps and contacts
- Status: modalities of the ECB proposal are under discussion between the IMF and the ECB.
- Media relations:
- IM F Communications Department
- PRESS OFFICER: Andreas Adriano
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
Source: Statement on Greek Banking System, September 28, 2017.