A new written question to the EU's Single Supervisory Mechanism (SSM) regarding the International Monetary Fund (IMF) report on the assessment of the stability of the financial system and non-performing loans in Greece.
In its recent report, the IMF notes that approximately 2.4 million borrowers (primarily households and small and medium-sized enterprises) have non-performing loans assigned to credit servicers and are excluded from the banking system.
As noted by the PASOK MEP and member of the European Parliament’s Budget Committee “this accounts for one-third of the economically active population, leading to systematic financial exclusion, drastically limiting their access to new credit, and reinforcing the concentration of bank lending in a few large enterprises.”
At the same time, the report underscores the need to strengthen supervision of credit managers and transparency , particularly regarding the “Hercules” program .
Based on these findings, Nikolas Farantouris calls on the Single Supervisory Mechanism:
- To assess the impact of excluding such a large segment of the economically active population from the banking system on financial stability and the transmission of monetary policy in Greece.
- To take measures or issue guidelines to the Bank of Greece and supervised entities to address this exclusion.
- Clarify whether it agrees with the IMF’s findings regarding the need for enhanced supervision and transparency among credit managers and regarding the “Hercules” program .
As the Greek MEP stated from Brussels , “the figures are shocking. With one-third of Greeks excluded from the banking system, society and economic prospects are heading toward a dead end. PASOK has submitted legislative proposals and solutions for ALL of the above issues. And PASOK will implement them.”