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Banks looking for fraud in red loans

Banks are trying to ferret out cases where entrepreneurs take out loans and instead of investments sequester said funds in foreign accounts.

Towards this end they often cross index their data in order to recoup part of their loans. This as bank sources mention is very complicated as such individuals try to erase their tracks.

Bank sources relate one interesting coincidence relative to unserviced loans and decreased savings accounts. Specifically, in December 2013, nor serviced loans had reached around 70 billion euros, while savings had shrunk to 160 billion from 230 billion in 2009, a difference of 70 billion euros.

This coincidence, Kathimerini daily notes, points to a relationship between non-serviced loans and funds fleeing abroad. This does not mean that unserviced loans were automatically transformed into fleeing funds, but there are strong indications that there is a correlation especially as concerns entrepreneurial loans, that went unserviced.

The same sources believe it possible that around 10 billion euros reflect such predatory practices of business people that overdebted their firms and transferred loans to personal accounts.

These are people that in 2011-2012 saw that Greece could find itself outside the Eurozone and chose a strategy of stopping payments to loans and transferring funds abroad.