Greece hopes to attract to recapitalize banks private investors

Greece hopes to attract to recapitalize banks private investors

At the meeting of the government Council of Greece on economic policy discussed the purpose and conditions of the recapitalization of banks, which is scheduled to be completed this year.

ATHENS, 14 Oct. Gennady Melnik. The Greek government intends to organize a new mode of management and operation of banks, to avoid the repetition of problems in the banking system, and hopes to bring to recapitalize banks and private foreign investors.

About it I there was a speech at meeting of the government Council on economic policy, which was held on Wednesday, Deputy Prime Minister Yannis Dragasakis, reported the press service of the government.

“The meeting discussed the objectives and conditions for the recapitalization of banks in order to avoid repeating the problems experienced with similar processes in the past. In this context, the Finance Minister immediately instructed to finalize the draft law, which would define the role of the financial stability Fund and determined the principles and procedures of the recapitalization to the bill was immediately tabled in Parliament after preliminary consultations on this issue with institutions creditors”, — is spoken in the message received by RIA Novosti.

The recapitalization of banks is planned to be completed this year. For this purpose lenders can provide up to 25 billion euros.

The government has identified three goals with the recapitalization. This participation in the forthcoming capital increase from private investors and international financial organizations that may be interested, while ensuring the state presence in the banking system.

Secondly, the recapitalization of banks must be connected to “red”, that is, nonperforming and past due loans, with a principal place of residence of the debtors mortgage should be protected from sale.

Thirdly, the creation of a new mode of management and operation of banks in order to prevent such phenomena, as the lack of transparency, the interweaving of interests, mismanagement and so on.

The meeting adopted the decision to establish a development Council which will work under the guidance of the Minister of economy, development and tourism. In addition, he will formulate a plan for the country’s development strategy. The project should be completed in time to undertake the necessary consultations with the public before it is submitted to the creditor institutions, according to the government.

The government Council decided to speed up the process of creating a development Bank. Besides it was resolved to adopt initiatives that will accelerate the implementation of national projects (NSRF) for the period 2007-2013.