and to set ambitious targets in order to significantly reduce the npe ratio by the end of 2019. the performance of greek banks has so far been broadly in line with their approved npl targets, as shown in the bank of greece ’ s quarterly npl monitoring reports. however, the targets to be achieved by the end of 2019 are back - loaded. beyond 2019, continued efforts are needed to further reduce the npe ratio in greece in the years ahead, until it is closer to the euro area average. swift progress in resolving npls is crucial not only for economic recovery, but also for the forward - looking capital adequacy of greek banks. this depends on the economic environment stabilising and, importantly, on the continued and improved effectiveness of the relevant legal frameworks ( household and corporate insolvency, out - of - court workout, npl sales and eauctions ). for example, it will be easier to reduce the amount of npls if there is a reduction in the backlog of cases related to the household insolvency framework ( the so - called katseli law ) that are still pending before the courts. in june the government presented an ambitious action plan that will be closely monitored in the context of the enhanced surveillance framework. are you satisfied with the pace of e - auctions? a comprehensive approach involving all stakeholders must remain in place at all times to ensure that the e - auction system continues to be successful. we have seen a clear improvement here in recent months, but further progress in raising the number of auctions is needed, especially for properties located outside attica. so we will continue to monitor the situation closely, in cooperation with the authorities. it is also important to recognise that e - auctions have incentivised borrowers ( including strategic defaulters ) and banks to work towards a mutually beneficial solution. there are indications of increased restructurings and settlements of loans now that eauctions have started. the ecb lifted the waiver for greek government bonds. wasn ’ t the enhanced surveillance sufficient to keep it? how much liquidity did banks have to get from ela as a result of lifting the waiver? the minimum credit rating rule for ecb collateral eligibility pre - dates the greek crisis. in 2010, we acknowledged that the rule could be procyclical and granted a waiver to countries under an eu / imf programme, because policy conditionality and access to comprehensive information gave us confidence about the

benoit cœure : interview in kathimerini interview with mr benoit cœure, member of the executive board of the european central bank, in kathimerini, conducted by ms eirini chrysolora and published on 5 september 2018. * * * does the completion of the programme mark a new era for greece in your view? is enhanced surveillance not just a continuation of the programme? let me start by saying that it would be all too easy to take the opportunity of greece graduating from the programme to turn the page and say “ mission accomplished ”. the programme years have been very difficult for the greek people. policymakers across europe have a duty to learn the lessons of this painful journey and improve policy, at both european and national levels. with hindsight, one can argue that the design of the programmes could have been more effective in supporting social safety nets and combating rent - seeking, that the pace of reform of the financial sector could have been faster, and that the need for debt reduction was overlooked by creditors. all this has gradually improved over time. i would like to congratulate the greek government for its remarkable work in recent years, implementing key reforms in the economy and the society in general and in the financial sector in particular. for example, social solidarity income helps direct scarce resources to those who need them most, and opening up industries or sectors, such as pharmacies, benefits households which have borne the brunt of crisis adjustment. regarding the financial sector more specifically, the new legislative framework provides much better support for reducing non - performing loans ( npls ) compared with the situation a couple of years ago. this will help banks support economic growth and job creation more effectively. but let ’ s not forget where it all started. never again should a euro area country end up in such an unsustainable position as greece ’ s in 2010. we need responsible national fiscal and economic policies, and a better euro area governance framework. as for enhanced surveillance, it is not a new programme but rather a strengthened form of cooperation between greece, the european institutions and the euro area countries to support the transition towards full market access. make no mistake, the burden of gaining the trust of markets and depositors has now fully shifted to the greek government. don ’ t expect building trust among investors to be easier than convincing the institutions. what will be the ecb ’ s role in the context of enhanced surveillance? will you provide your contribution as in the past