The gradual recovery of the Greek banking system from the global financial crisis is understood to be set to register another milestone, although the terms of the deal is expected to underline that confidence in the system still lags the other countries in the Eurozone whose banks needed to be bailed out.
Eurobank, the third largest bank in Greece by assets, is understood to be close to agreeing to offload a package of non-performing loans. The identity of the likely buyer is not known and it is thought that the price being discussed is only around 5% of the face value of the loans.
It is thought that deal will only involve loans of around €400m. This is tiny in the context of the aggregate bad debts of the Greek banks, which are now estimated to be in excess of €100bn. Nevertheless credit analysts say that the fact that even this liquidity is beginning to return to the system will help to rebuild confidence and underline the recognition that recovery is beginning to build some momentum, as the economy finally starts to register some growth.