Greek Banks to Further Write-off EUR 1 Bln Bad Loans by End 08

Greek banks will further write-off non-performing loans (NPLs) of EUR 1 billion, booked during the 2006-2008 period in an effort to improve their financial standing and comply with Basel II solvency rules, Reporter.gr says.

Greek banks have already incurred EUR 2.8 billion of write-downs, while EUR 1 billion write-offs is expected by the end of 2008, the sources said.

ATEBank has proceeded with the biggest write-offs year-to-date, amounting to EUR 888 million, with EUR 372 million in 2006, EUR 461 million in 2007 and EUR 55 million in the first quarter of 2008.

Alpha Bank has incurred EUR 743 million of write-downs, of which EUR 361 million took place in 2006 and EUR 382 million in 2007.

EFG Eurobank has taken write-downs of EUR 544 million bad loans, of which EUR 267 million in 2007 and EUR 287 million in the first quarter of 2008.

National Bank of Greece (NBG) the largest lender, proceeded with write-offs of a total of EUR 517 million -EUR 210 million in 2006 and EUR 307 million in 2007.