"This is essential to allow for a resumption of credit to the private sector to support growth and job creation," the Commission said in a statement. "Reforming the legal framework for foreclosure and insolvency is paramount in order to provide balanced incentives to borrowers and lenders to negotiate and reach agreement on restructuring of non-performing loans, while avoiding undue hardship."
At the same time, it said, the supervisory authorities need to intensify their monitoring of banks' effective action to collect and restructure debt in compliance with the existing Code of Conduct and arrears management framework.
The Commission said a second challenge was to maintain public finances on a sustainable path, and the third was to strengthen institutions. "Firm implementation of the government's privatisation plan remains essential to increase economic efficiency, attract investment, and reduce public debt," said the Commission.
Having said that, the Commission said,
Addressing the press yesterday, Finance Minister
"In this manner
On the hotly contested issue of protecting primary residences, Georgiades explained that the Troika concurred on the need to treat these instances differently to general foreclosures. That is, while the government will press ahead with property foreclosure legislation, an extension was agreed with regard to cases involving primary residences.
Georgiades also announced that the release of the fifth tranche of the €10-billion bailout loan by the Troika – around €680 million – will be carried out near the end of June, following a Eurogroup session on
He also announced that in the immediate future, on instructions from President
As was the case in 2013, the Troika's forecast of
"There is an issue of principle here," the source said. "I cannot venture a guess on the outcome, but the co-ops have been recapitalised with €1.5 billion of taxpayers' money, so an effort to recoup some of that money will be made."
"We asked the governments of the BoC and the co-ops to submit a special examination report on lending and debt-restructuring practices with respect to loans related to former or current managers, directors, members of committees, shareholders. We just want to see to what extent there are lending decisions of boards concerning themselves – we're going to have a close look at that."
This point raised the question of timing, as the decision for the Troika to investigate banking practices and possible abuse of power came over a year after banks were diagnosed as in dire need of recapitalisation, during which accusations of alleged wrongdoing by bankers abounded. The suspicion that someone was unhappy with the pace – and efficiency – of investigations into the banking meltdown by local authorities, and decided that the Troika should step in as a truly independent body, seemed legitimate.
"If one looks at the things we have asked the banks to do during this time, it has been extremely challenging," senior
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