The Greek government’s master plan to restore growth, after it emerges from eight years under harsh bailout conditions this August, revolves around a key factor that could jump start its economy: its banks.
Prime Minister Alexis Tsipras will present to his cabinet on Monday at 1 p.m. in Athens the 110-page plan, which sets as its main priority the reduction of non-performing loans, the elimination of capital restrictions and the improvement of bank governance. Such steps will increase “the ability of the sector to serve the growing needs of the real economy,” according to a copy of the document obtained by Bloomberg News.
As part of a “transformation of the Greek financial sector,” the government pledged to set up cooperative banks that will operate at a regional level to finance small and medium-sized companies and local businesses. Maintaining adequate levels of capital at the nation’s four biggest banks is “a highly important element of the strategy.” Greece’s banking sector is the most highly concentrated in the euro area, as the systemic banks hold around 96 percent of total financial assets, according to the document.
Greece reached a technical agreement in Athens this weekend with its creditors that will allow conclusion of its fourth and final bailout program review, enabling policy makers to proceed with designing a framework for the country’s post-program monitoring and determining what sort of strings would be attached to debt relief. Greek Finance Minister Euclid Tsakalotos said such a mechanism will be discussed at the June 21 Eurogroup meeting.
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The banksters will only create more DEBT, not real prosperity!
that’s the whole point. turn the whole country into a slave plantation owned by the banks.
the politicians get the comfy jobs as plantation bosses.
anon
You are right. This is our PM’s wet dream. He imagines himself as the plantation’s head gardener offering fruit baskets to his bosses in Germany.