Trade with Greece
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ECB’s stress test is 16-17 months,
which, as a time for preparation, is
not exactly too much. On the other
hand, though, it is neither too little.
The banks spare no opportunity to
declare that they will be prepared
on time, provided that the neces-
sary measures will be taken within
the next few months – on all levels.
Especially on the loan restructuring
level, principally for business loans,
which will enable Greek companies
that still have a future to break free
from the mire of the past 6-7 years,
despite the fact that Greece is in cri-
sis for almost a decade (this is the
longest recession in global econom-
ic history, since it has lasted more
than the Great Depression of the
1920s in the US).
And this because Greece still has
companies that, despite being
indebted, have the potential to make
a comeback, given the appropriate
assistance, so long as the necessary
legislation is passed.
For example, the legal provision
that would relieve any banking
executives who sign such restruc-
turing programmes from any liability
under criminal or civil law, is still
pending. Banks are currently sub-
ject to a peculiar regime. Since they
are, to a great extent, controlled by
the state, through the Financial
Stability Fund (FSF), any of their
executives may, at any time, be
charged for embezzling the banks’,
and by extension, the taxpayer’s
money. Therefore, these persons
may be summarily taken to court if,
for example, it is deemed that a cer-
tain bank loan shouldn’t have been
restructured. The result? Under
such stress, no executive of any
systemic Greek bank (National
Bank, Piraeus Bank, Alpha Bank,
Eurobank) will put their signature
under such deals. And thus the
market is still on hold. Even healthy
companies with good prospects,
are eagerly expecting this legisla-
tion that will untie the bankers’
hands and provide the market with
the requisite liquidity.
What is really encouraging is that
