Greek central bank suggests switching €7.5 billion in bad assets to new entity

The Bank of Greece

Greece’s central bank has announced a new plan to reduce the country’s high level of non-performing loans, by transferring up to €7.5 billion ($8.5 billion) of bad assets to a special purpose vehicle.

The Bank of Greece’s proposal bears a strong resemblance to the “bad banks” created by Spain and other European countries at the height of the financial crisis.

In a document sent to media outlets including Central Banking, the Bank of Greece said the country’s five biggest commercial banks would

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