Hercules bad loan plan not a panacea to sector woes, Moody's tells

"The scheme itself is not a panacea for resolving the asset quality problem in the banking system, given that we estimate only up to around 36 billion euros of NPEs can be dealt with through this scheme compared to around 71 billion euros of outstanding NPEs in the system as of September 2019," Nondas Nicolaides, Vice President – Senior Credit Officer at Moody’s Investors Service, told Business Daily.

Hercules bad loan plan poses traps, political challenges for Greece

Bad loans are not something new in Greece. In fact, they are as old as the crisis itself. However, no previous Greek government showed any determination to address the issue, as international creditors adopted a similar stance. Since the crisis arose in 2008, Greek governments kept putting the issue on the back burner by blocking efforts by lenders to recover nonperforming loans (NPLs), providing loan holders with protection.