Non-performing loans ratio in Greece 2008-2019

This statistic presents the ratio of non-performing loans (NLP) to total gross loans in Greece from 2008 to 2019. Non-performing loans are those that are in default or are close to being in default. Many standard contract terms specify that loans become non-performing after being in default for 90 days, but this can vary. A steep increase in the share of non-performing loans in the Greek loan's portfolio took place from 2010 until 2017 where the share reached 45.57 percent. This share has since reduced to 36.45 percent in 2019.

Other European countries

Compared to the high ratio of NPL’s in Greece, some countries across Europe saw bank non-performing loans (NPL) to total gross loans ratio of around one percent. In 2018, bank non-performing loans (NPL) to total gross loans ratio in the United Kingdom was 1.07 percent. Similarly low ratio’s can be found in Germany.

Coverage ratios

A non-performing loan coverage ratio looks at a bank's ability to absorb future losses. Banks understand not every loan that they lend will be paid in full, so by predicting the rate of non-performing loans, banks can be prepared to cover these future losses. The higher the coverage ratio, the better prepared a countries banks are for such an outcome.