Dragasakis: Bank recapitalization signals start of new era for banking sector
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The success of a new bank recapitalization requires resolving the problem of non-performing loans, one of the top priorities of the government, said the government’s vice-president, Yiannis Dragasakis, during a meeting with Greek bankers on Wednesday.
The meeting focused on new legislation promoted by the government for resolving the NPLs issue for Greek households and protecting home owners, along with developments in the recapitalization process.
Dragasakis said that the maximum implementation of the new legislation will depend on financial institutions’ stance on the issue. In this framework, Dragasakis noted that the government aimed at offering full protection to vulnerable households, significantly reducing servicing costs and reducing the value of loans under article 15 of the draft law tabled in Parliament.
The vice-president of the government, commenting on the recapitalization process, said a successful completion of the plan would signal the beginning of a new era for the banking sector and the economy in general. In this framework, he added, priorities to be set would be strengthening liquidity to the economy, reducing the cost of money for consumers and enterprises, while resolving the NPLs problem for enterprises required a new policy of lending designed to boost employment and productive reconstruction of the country along with promoting a new model of business activity.
Dragasakis said that a new model of bank governance was necessary, boosting transparency and responsibility.