forecast has been based on two macroeconomic
scenarios, which reflected “plausible outcomes
for key indicators” (e.g. real GDP growth, unem-
ployment rate, inflation, residential and commer-
cial real estate prices) during the period 2012-
2014.
Now the market has turned its attention to the
recapitalization plans of the four “core” banks,
which will determine the level of new equity
issues, as private shareholders will have to sub-
scribe to at least 10% of these issues in order to
avoid losing control of the banks to the state.
The improvement of the banks’ capital position
does not mean that money will automatically start
flowing into the market through the extension of
loans or other credit facilities; nonetheless, it will be
a first step towards the rationalization of the Greek
banking sector that –in conjunction with the
restructuring that is already underway– will restore
stability in the country’s financial system and,
therefore, to the private sector of the economy.
Trade with Greece
30
It is really interesting
that -for the first
time in its history- the
European Investment
Bank will act as a guar-
antor in order to facili-
tate foreign trade in
Greece.
”
“
