The second review of the Greek economic adjustment programme now being concluded once more includes an analysis by the institutions of non-performing (‘red’) loans. This process is still pending despite a commitment by the Greek Government that it would be completed by October 2015.

The problem, however, does not concern Greece alone, the estimated level of non-performing loans in the banking system as a whole exceeding EUR 1 trillion. This, combined with low growth indicators, negative interest rates and stricter rules, means that it will take years for banks to reduce to acceptable levels their exposure to non-performing loans.

In view of this:

— Will the Commission, together with the European Central Bank, which carried out a public consultation on the issue in September 2016, seek to ensure that, as part of the assessment, an immediate set of legislative initiatives are proposed in Greece to tackle the problem more rapidly?
— What medium-term measures are being planned to contain the problem, which is slowing down the recovery process in the banking system and the European economy as a whole?
— What measures does the Commission recommend to protect the banking system in future?