The Banks are well aware of how the market works. Hence my example of a ” Burro” mentality. What they should realise/act upon is that the longer it takes the bigger the problem will get with the non performing loans. Even if the interest is suspended. The bank is losing out on cash discounting i.e. value of money today against the value of it tomorrow & with inflation as it’s current level they are eroding the value of their assets on their books. .
I agree Shakeel, you would think they would be aware of those factors. However Spanish bankers seem to have a different mentality. If you have ever spent hours and days trying to negotiate with them, as I have you come to realise their understanding of market economics is strangely limited.