People walk past the headquarters of Bank of Greece in Athens, August 27, 2015. REUTERS/Alkis Konstantinidis
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Turned down for a 10,000 euro ($11,100) loan, George Sarris is one of hundreds of thousands of small-business owners shunned by Greek banks.Six months of wrangling with creditors had led to a 40 billion euro deposit run, culminating in Greek banks being shut and capital controls enforced at the end of June.The latest bailout, the country's third, allocates up to 25 billion euros for bank recapitalization, although bank insiders say the figure is more likely to be in the 10 billion to 15 billion euro range.A Greek bank rescue fund financed by Greece's creditors pumped 25 billion euros into the banks in exchange for shares in 2013 and already holds majority stakes in National Bank, Piraeus Bank and Alpha Bank, as well as a 35-percent stake in Eurobank.Meanwhile private investors who injected 3 billion euros into Greek banks in the 2013 recapitalization, and bet another 8.5 billion euros on them last year, now face dilution.One option raised has been to set up a "bad bank," to give the banks a clean sheet.
FOLLOW THIS ARTICLE