THE finance minister will have veto power in the new structure of the Resolution Authority, according to a bill tabled by the government.
The bill amends the composition of the committee, returning the
The governor of the
To date, the Resolution Authority was comprised of the CBC Governor, the finance minister and the head of the
The change enabled the Authority to have a decisive say in electing members to the
Reinstating the initial composition of the Resolution Authority is one of the conditions for the release of the fifth tranche of a €10 billion international bailout loan by international creditors to
The memorandum of understanding (MoU) agreed to between
But the revised MoU that followed the Troika's fourth progress review mandated that the changes need to be enforced by mid-July.
According to the bill's introductory note, its aim is the enhancement and improvement of the Resolution Authority so that it can become more effective.
The bill sets out decision-making procedures, committee-session rules, convening scheduled and extraordinary sessions, and minute-keeping practices.
A clause in the bill calls for the CBC to set up a 'resolution unit' to provide support to the Resolution Authority in executing its powers and duties.
Also, the Finance Minister's consent will be required for decisions that affect public finances or are systemic in nature.
Specifically, the minister's approval will be required for decisions on the resolution of a banking or other institution, the resolution measures, the selling of banking operations, or decrees relating to the transfer of all or part of the assets of a bank undergoing resolution to an intermediate banking institution or asset management company.
The bill also includes provisions relating to the Resolution Authority's power to gather information, as well as entering and investigating procedures, and impose administrative fines and other criminal clauses.
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