ECB rejects IMF’s demand for another asset quality review of Greek banks

As a reminder, in July 2017 the IMF approved its participation in the Greek program “in principle” and, among other issues, it has called for a new asset quality review and for an amount of EUR 10bn to be earmarked for potential recapitalization needs for Greek banks.

The IMF’s request reflects a more radical approach when it comes to the cleanup of banks’ balance sheets so that they can underpin a faster economic recovery.

In its response to the IMF, the SSM stated that a review of banks’ loan portfolios is already in progress, is expected to be completed within H2 2017, and will determine any further actions needed.

The supervisory arm of the ECB also highlighted that as an independent organization it cannot be directed either from governments or any other organizations.