Feedback of Greek banks
Greek banks can overcome the financial problems unfolding in southeastern Europe, as they are exposed to a less extent than its west European rivals and have the required capital to absorb loan losses, said the governor of the central bank, Reuters informs.
“In South East Europe, the economic activity is weakening. It is a worrying slowdown, and we are keeping tabs on the situation on a regular basis”, said the governor of the central bank, George Provopoulos.
Greek banks hold subsidiaries in Bulgaria, Romania, Serbia, Albania, Turkey, Poland and Ukraine. Financial institutions such as National Bank of Greece, Alpha, Eurobank and Piraeuse Bank have largely contributed to a solid growth of lending activity in lending activity in South-East Europe.
The new credit flow in these emerging economies dropped heavily. The credit expansion in Romania, for example that was rising at 70% pace slowed down at the end of 2008, and it could lag even more this year.
“Greek banks have expanded in the region, but not as much as other banks in other countries, such as Austria. The loans granted by Greek banks amount roughly 55 bln euros, or 16-17%of the country’s GDP, while in Austria it accounts 70% of GDP”, Provopoulos added.
Investments made by Greek banks in the southeastern European emerging economies are a vote of confidence for the respective countries, and the temporary difficulties will not change this, said Provopoulos
“In South East Europe, the economic activity is weakening. It is a worrying slowdown, and we are keeping tabs on the situation on a regular basis”, said the governor of the central bank, George Provopoulos.
Greek banks hold subsidiaries in Bulgaria, Romania, Serbia, Albania, Turkey, Poland and Ukraine. Financial institutions such as National Bank of Greece, Alpha, Eurobank and Piraeuse Bank have largely contributed to a solid growth of lending activity in lending activity in South-East Europe.
The new credit flow in these emerging economies dropped heavily. The credit expansion in Romania, for example that was rising at 70% pace slowed down at the end of 2008, and it could lag even more this year.
“Greek banks have expanded in the region, but not as much as other banks in other countries, such as Austria. The loans granted by Greek banks amount roughly 55 bln euros, or 16-17%of the country’s GDP, while in Austria it accounts 70% of GDP”, Provopoulos added.
Investments made by Greek banks in the southeastern European emerging economies are a vote of confidence for the respective countries, and the temporary difficulties will not change this, said Provopoulos