Bankers, though, do not seem to be persuaded.
However, the central bank’s opinion is embraced
by the government’s finance staff, judging by the
privatization program prepared by the latter. The
centrepiece of this program is the sale of a major
stake in Hellenic Postbank SA, as soon as cir-
cumstances allow such a deal, which may take
place even prior to the end of 2011, provided that
the stock market’s outlook has improved. The
Ministry of Finance believes that, apart from its
other benefits (i.e. the invaluable funds raised
through this sale) this deal will trigger a far-reaching
reshuffle in the Greek financial system, since
Hellenic Postbank’s takeover by another Greek
group will radically change the current delicate bal-
ance in the Greek banking market, thus completely
altering its prospects. In practice, this will trigger a
domino effect. This, however, remains to be seen.
It also remains to be seen whether the other pes-
simistic prediction regarding the further reduction
of deposits and loans during 2011 will be come
true, or if the estimate of a new, large drop in the
number of credit cards will have any basis. It is a
fact, though, that the year 2010 left serious injuries.
It is worth noting this telling fact: according to esti-
mates, almost 1 to 1.2 million credit cards were
taken out of circulation last year. Fearing the crisis,
their holders chose to repay them in full and cancel
them. And this was just the first year of the actual
crisis and recession.
It is, therefore, reasonable to ask: What is going
to happen from now on, as financial problems will
be growing bigger and bigger? Given that this
problem (the reduction of loans, deposits, credit
cards and so on) will not only affect the narrow
field of banking activity, but overall consumption
and the economy as a whole. And, as we all
know, the economy is a chain. If one of the links,
no matter how insignificant it may seem, breaks,
then everything comes apart.
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