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Eurobank president: Greek credit expansion will come after economic recovery, not before

Eurobank President Nikos Karamouzis on Monday underlined that a positive credit expansion in recession-battered Greece, something he said is imperative for growth, will not precede but will follow an economic recovery.

The Greek banking executive made the statement during an address in the British capital organized by the London School of Economics’ Hellenic Observatory and the Hellenic Bankers Association.

Karamouzis cited three main challenges faced by Greece’s banking system, which he said affect the sector’s ability to finance and support the ailing Greek economy.

The ticked off low profitability, liquidity pressure and the very high level of non-performing loans (NPLs) as the main challenges hampering Greek banks.

The Eurobank president also emphasized that Greece’s banking system cannot, by itself, revive the crisis-plagued economy in the country, saying such a prospect depends on a series of macro-economic and other factors.