The government guarantees EUR 9 billion through a… pillow for the banks

The government guarantees EUR 9 billion through a… pillow for the banks

The Greek government is attempting to make use of the EUR 37 billion pillow to help banks try to reduce their “red” loans in their portfolios.

The government is soon awaiting the green light from the European Union authorities for the asset protection scheme (APS) that is promoting to reduce red loans by EUR 30 billion.

Banks are working to reduce the volume of non-performing loans to EUR 80 billion, in order to start lending operation again and boost their profitability, with the State being required to participate with guarantees worth EUR 9 billion.

Announcement

The moves by the current government were announced by Babis Papadimitriou. Specifically, in an interview on July 3, 2019 (4 days before the national elections) on Real FM 97.8, Babis Papadimitriou revealed that ND plans to give part of the EUR 37 billion “pillow” to the banks, so that they can “get rid of the burden of red loans”.

The new government is seeking to speed up the process and this task has been undertaken by Deputy Finance Minister Giorgos Zavvos. The scheme, code-named “Hercules Project”, is similar to the model followed in Italy and aims to help banks get rid of red loans by transferring them into a scheme that includes government guarantees.

Staikouras to meet with investors in London

At the same time, Finance Minister Christos Staikouras will attend as a keynote speaker at the 14th Annual Roadshow organized by the Athens Stock Exchange in London, in collaboration with internationally renowned investment banks and brokerage firms.

Subsequently, the Minister of Finance will have many individual meetings with participating companies and investment groups.

Participants in these meetings are over 60, reports the Ministry of Foreign Affairs./ibna