Abolishment of the Hercules scheme is premature, states DBRS Morningstar

It is premature to abolish an effective tool like the Hercules asset protection scheme, which expires in October 2022, given the challenges posed to Greek systemic banks by the spike in inflation and the Russian invasion of Ukraine, Canada-based rating agency DBRS Morningstar notes.

“There is continuing uncertainty about the speed and volume of possible future deterioration of assets in the bank balance sheets,” the firm said.

It explained that inflationary pressures, rising energy prices as well as possible supply bottlenecks will put pressure on consumers and businesses.

The length of this price pressure and how it is offset by consumer protection and business support programs will play an important role in setting the trend for new nonperforming loans and their performance, it argued.

Original Story:  Ekatemerini | Newsroom 
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