The law on the recapitalization of banks in Greece will be discussed next week

The law on the recapitalization of banks in Greece will be discussed next week

The Greek government noted that the purpose of the recapitalization is to make it last. Last year’s recapitalization of banks in substantial sums was not effective.

ATHENS, 22 Oct. Gennady Melnik. Past recapitalization of Greek banks was ineffective, the Greek government intends to make the upcoming recapitalization of the latter. To this end we are preparing changes to the legislation, the relevant legislation will be tabled next week, reported the press service of the government.

On Thursday, Prime Minister Alexis Tsipras chaired a meeting of the Cabinet of Ministers on which, in particular, was discussed the forthcoming recapitalization of banks, defined its principles and goals, identifies steps in the coming period.

“In the past were carried out the recapitalization of banks to a significant amount, but it gave no effect. The government’s aim is that the recapitalization was the last”, — reported the press service of the government.

On the second assistance programme in 2013 was held on recapitalization of 40 billion euros, the volume of current investments has not been determined, it is anticipated that it will be up to 25 billion euros. All dedicated to the recapitalization of private banks funds were recorded in the debt of Greece.

“The success of the recapitalization is combined with a solution of “red” loans, as well as with radical changes in the management and operation of banks. The goal is to implement in the banking system of the rules of transparency, which transforms them into a tool of economic development and stability, stop the policy of opaque and concessional lending that led to the current crisis”, — said in the government.

In this regard, the government considers it a matter of principle the protection of the only housing for the economically weak debtors on loans.

“The government considers it very important question about the terms of the recapitalization, it needs to be completed as soon as possible and in any case until the end of time. In this direction have already taken all the necessary steps. The necessary legislation is ready and will be tabled within the next week,” the government said.