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Greek Unemployment, Non-Performing Loans Soar To Fresh Record Highs

Tyler Durden's picture


It wouldn't be the new normal if the collapse in Q2 US GDP to sub-1% wasn't met by a new record high in the Dow Jones. And it certainly wouldn't be the new abnormal if a day of resplendent green in European bourses didn't have some "matching" economic news out of that perpetual reminder that Keynesianism in the end always fails: Greece. Luckily, validating that all is unwell and stocks can proceed to soar to record highs unbothered, on one hand the Greek Statistics Office reported that Greek unemployment in April just rose to a new all time high of 26.9%, up from 26.8% in March, and up from 23.1% a year ago, while Kathimerini reports that Non-performing loans: those perpetual thorns of insolvency in bank balance sheets, just surged to €66 billion, amounting to a whopping 29% at the end of March from a "manageable" 24.2% at end-December. That's a ridiculous 20% increase in total NPLs in three months that was only exposed due to the Troika's stress testing! Just how atrocious is the reality on European bank books anyway?

First, from Elstat:

Unemployment rate in April 2013 was 26.9% compared to 23.1% in April 2012 and 26.8% in March 2013. The number of employed amounted to 3,636,042 persons. ?he number of unemployed amounted to 1,337,621 while the number of inactive to 3,337,051. The corresponding figures for April 2008 to 2013 are presented in Table 1.


The number of employed decreased by 159,955 persons compared with April 2012 (a 4.2% rate of decrease) and increased by 43,668 persons compared with March 2013 (a 1.2% rate of increase).


Unemployed increased by 194,746 persons (a 17.0% rate of increase) compared with April 2012 and by 24,025 persons compared with March 2013 (a 1.2% rate of increase).


Inactive persons –that is, persons that neither worked neither looked for a job– decreased by 23,770 persons (a 0.7% rate of decrease) compared with April 2012 and by 20,218 persons compared with March 2013 (a 0.6% rate of decrease).

A chart which may be confused with the S&P:

Youth unemployment was... well, here it is:

As for the insolvent Greek banking sector which keeps getting insolventer:

Nonperforming loans (NPLs) issued by Greek banks soared again in the first quarter of the year, as according to a draft report by the representatives of the country’s creditors, delayed loans amounted to 29 percent at the end of March from 24.2 percent at end-December. This has taken their sum to 66 billion euros, although some 40 percent of that (26 billion) is covered by the banks’ provisions.


The representatives of the European Commission, the European Central Bank and the International Monetary Fund – known as the troika – do note however that the rate of creation of new bad loans has slowed, adding that the quality of banks’ portfolios is continuing to deteriorate owing to the recession.


In that context, the banks’ stress tests, to be conducted in the fall, constitute the next major challenge that local lenders are set to face.


According to the troika’s draft report, the upcoming stress tests represent the next main action to determine the strength of domestic lenders vis-a-vis the crisis and their capital adequacy ahead of macroeconomic developments and forecasts in terms of the country economic state of affairs.

We are confident that Greek banks will pass all tests, stress or otherwise, with flying colors both now, and when NPLs finally hit 100%. After all, they can only go down from there.

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Thu, 07/11/2013 - 08:12 | 3740879 buzzsaw99
buzzsaw99's picture

Give it up Greece, it's over.

You're living in the past man.

You're hung up on some clown from the sixties man.

Thu, 07/11/2013 - 08:14 | 3740899 GetZeeGold
GetZeeGold's picture



Why give it up when you can just call the IMF?

Thu, 07/11/2013 - 08:19 | 3740902 buzzsaw99
buzzsaw99's picture

When you ain't got nothin', ya got nothin' to lose...


Thu, 07/11/2013 - 09:12 | 3741064 Duude
Duude's picture

The IMF has a nasty habit of throwing up their own requirements from time to time. They can be overcome with consistent persistence but its a bit humiliating for the average beggar nation. Venezuela and Ecuador took the plunge and are in creditor hell. Its no picnic.

Thu, 07/11/2013 - 08:32 | 3740944 GaryNeville
GaryNeville's picture

Greece's situation is beyond comprehension. Why not just default and leave the EURO. YES their new currency will get crushed at first but it'll soon rebound. Isn't a weak currency desirable anyway? Greece would soon rebound as a tourism powerhouse. I live in the UK and there's nowhere for Europeans to go on our summer holidays where we can escape the dreaeded EURO. Everywhere the EURO is, guarentees over priced beer, food and accomadation. If there was a Southern European state out of the EURO we'd all flock there in droves and spend money. Admittedly, Brits abroad isn't everyone's cup of tea : ) - but much of Greece's tourism caters for the more muture family tourism rather than young binge drinkers. There is a way out for Greece - although Brussels and Berlin would like to make the people of Greece believe there isn't.

Thu, 07/11/2013 - 09:08 | 3741050 Duude
Duude's picture

Yeah, Greece could offer a free wheelbarrow wallet to carry around their pocket money for everyone booking at least a 2 week stay.

Thu, 07/11/2013 - 11:10 | 3741568 asteroids
asteroids's picture

Greece fell into an economic black hole with the second bailout. They have crushed bondholders and are trying to steal whatever they can. This ends at best with default, or at worst for Germany et, all a revolution where the citizens take back their infrastructure.

Thu, 07/11/2013 - 08:10 | 3740880 doomandbloom
doomandbloom's picture

So we buy? bad news good no?

Thu, 07/11/2013 - 08:12 | 3740883 Dr. Engali
Dr. Engali's picture

Hey, at least they can rest comfortably knowing that they have the Euro to fall back on.

Thu, 07/11/2013 - 08:15 | 3740900 Cursive
Cursive's picture

Unemployment and loan payments are for losers.  /sarc

Thu, 07/11/2013 - 08:16 | 3740903 I am Jobe
I am Jobe's picture

Coming soon to Amerika. Look in your own backyard and see the incomptency. Game over , only hope is war and welfare

Thu, 07/11/2013 - 08:16 | 3740904 overmedicatedun...
overmedicatedundersexed's picture

Greece sign on the docks: Closed for repairs  Under new Management with totally new menu. opening in 2016

Thu, 07/11/2013 - 08:21 | 3740913 GetZeeGold
GetZeeGold's picture



As an American taxpayer partly responsible for funding the IMF....in theory I should own part of an island over there.

Can't wait to see it.

Thu, 07/11/2013 - 08:36 | 3740954 Monedas
Monedas's picture

GetZeeCyprus !

Thu, 07/11/2013 - 08:19 | 3740911 Ribeye
Ribeye's picture

Crash Europe, just fckn crash already so we can start rebuilding,

This is just torture,

Thu, 07/11/2013 - 08:28 | 3740916 Quinvarius
Quinvarius's picture

It is almost as if they forgot that they use fiat because they can stop a recession by making sure people get it.  A recession when you use Fiat currency is just a massive CB fail.  The fact that it has gone this far would be hilarious if it wasn't for the people that are being needlessly tortured.  

Thu, 07/11/2013 - 08:39 | 3740966 Monedas
Monedas's picture

The Parthenon was not financed with Fiat !

Thu, 07/11/2013 - 08:42 | 3740977 smacker
smacker's picture

"Greek Unemployment, Non-Performing Loans Soar To Fresh Record Highs"


There you go, there's growth by the bucket load. What's everybody worried about? ;-)

Thu, 07/11/2013 - 08:54 | 3741010 shovelhead
shovelhead's picture

Things are so bad that the bank has repo-ed Riot Dog and are going to auction him off.

Thu, 07/11/2013 - 08:55 | 3741015 Smegley Wanxalot
Smegley Wanxalot's picture

What Greece needs is a 100% bail in.  Then everything will be perfect once again.

Thu, 07/11/2013 - 09:04 | 3741042 Mr. Hudson
Mr. Hudson's picture

Greece has already sold "off billions of dollars worth of state assets including airports, highways and state-owned companies, as well as banks, real estate and gaming licenses, to meet international lenders' demands that it raise funds." Yet, in doing so they have done nothing to alleviate their pain.

Someone on ZH once said "Watch what happens in Greece. That is exactly what will happen here in the United States". I agree, but I think what the U.S. is facing will be worse.


Thu, 07/11/2013 - 09:11 | 3741063 youngman
youngman's picture

"Greece has already sold "off billions of dollars worth of state assets including airports, highways and state-owned companies, as well as banks, real estate and gaming licenses,"

They are supposed to do this..but i doubt there are any buyers..to many old regs to follow and legacy costs....

Thu, 07/11/2013 - 09:13 | 3741071 yogibear
yogibear's picture

More lying by Greece and bailouts by the Troika.

The EU hs to save face and bailout all the club-med members over and over again.

Troika is implying infninte bailouts for the next few decades.

Thu, 07/11/2013 - 10:27 | 3741348 PT
PT's picture

How strange.  People with no money can't afford to repay loans.  No-one coulda see'd it coming!  Ohnose, waddawe do now???

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