"Greece is struggling to find out how to restore your banks with the weight of red loans, almost nearly half of the loan, the banks remain one of the serious Greece's economic recovery, "said the official:" There is even worry that the country will face a new financial crisis if it can not break its liens from a spiral spiral, "he adds.
Questions and answers from Bloomberg
What can be done
The government is considered a plan that is handled to save banks from red business faster, which may have guaranteed the state guarantees. The government can use the 24 billion euro for security bullet to support the banks, but it would be doubtful whether it could be financially necessary. It would be contrary to the common law in rules.
Are other possible solutions?
The Bank of Greece has created its own plan. There is another government idea to subsidize the reduction of smaller loans, according to the pattern of 'scheme on Cyprus. The plan can be presented in December.
How big is the problem?
The unavailable ratio contains almost 50% of the power of Greek banks. Its regulatory capital consists mainly of tax exemptions to the Greek state.
What has Greece done so far:
The banks have been recapitalized three times since the start of the crisis – in 2015. The state has almost offered 50 billion euros to stimulate its funding over the last decade and claims that they have a strong core base ; t be determined by economic relief.
How are things so serious?
The running spiral of Greek banks started a decade ago when the economy came in deep and longer-lasting recession. The start of the period was paid to the fact that the countries were massive since 2008. During this period, the country was largely bankrupt, with banks forced to make large writers of # 39; to make the bonds that they had in their possession. Finances are dry.
Banks are responsible?
Yes. The problems of countries have a series of failures in & # 39; The legal communications are elaborated, including delivering lenders unable to pay. These practices were not commented on, as large loans were offered to political parties and the media.
Will work support plans?
In comparable cases of the past (Italy, Cyprus), European regulators have followed a liberal approach to state aid schemes by promoting public assistance in preventing disaster. But these solutions are not easy or cheap.