was in the early 1980s; in other words, more than
30 years ago. This is an unparalleled experience,
even for many bankers who will be called to deal
with such a phenomenon for the first time in their
career.
However, it is also a sign of the deep recession in
which the entire Greek economy is slowly, but
T
o be sure, this year does not start out
under the best of omens. The amount of
new loans extended in 2011 is expected
to be the lowest of the past few decades. More
specifically, it is estimated that total loan balances
for the year will be reduced by almost €10 bn
year-on-year. Last time such a thing occurred
What is the immediate future of Greece’s banking sys-
tem, amidst an unprecedented - and not, any longer,
merely fiscal - crisis? This is the question that Greek
bankers will have to answer during the coming crucial
months.
By George Mandelas
Trade with Greece
56
BANKS
Strategic moves for
dealing with the crisis
