Vol 16 (2019) - Issue 1

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Distressed Loans and Workout Strategies in Greece

Synopsis

The global financial and economic crisis has caused uncertainties and serious disruptions in the Greek market. The financial distress and the huge amount of non-performing loans ('NPLs') have led to enormous losses and the Greek financial system is suffering. To tackle those problems Greece has lately reformed its national Restructuring and Insolvency law and additionally introduced new laws providing for competitive mechanisms to facilitate the transfer of NPLs and the restructuring of distressed loans. In this context, Greece has lately introduced Law 4354/2015, the main statute regulating the transfer and servicing of non-performing loans in the Greek market (as amended and currently in force, the 'NPL Law'). The newly introduced NPL Law was long awaited to improve the existing statutory legal framework of the national restructuring and insolvency law and enhance its effectiveness with regard to the sale and restructuring of non performing portfolios.