The management of the problematic “red” loans – as they are called – and the resulting restructuring of the private sector of the economy, despite being underrated, is a critical matter for the Greek economy, similar to the settling the public debt.
The problem is usually overlooked, or rather understated, as it is restricted to the area of responsibility of the banks.
However planning the strategy of managing problematic loans is highly important.
A lot will be determined by the ways, methods and handling of the matter by the banks.
The obsessive troika cynically insists upon the so-called “clear solutions”.
According to them, all loans that are not being service must be aggressively recovered, without any concern about the impact on the businesses, employees, society and the economy at large.
Under this method that cash-strapped businesses end up with the credit institutions, which quickly sell them off to willing investors, preferably foreign.
This solution may suit the so-called market vultures, but it will cause a second shock to the Greek economy that may cause a relapse.
The time and circumstances demand more complicated solutions, more organized choices, so that they stand by the sectors, increase competition, protect jobs, support Greek production and above all, to create an environment of opportunities for sustainable businesses, which may be under credit pressure but are not “written off”.
The restructuring of the private sector cannot be left at the whims of the unemotional market vultures; it requires actions, coordination and faith in a true rescue plan for Greek production, capable of supporting the recovery of the Greek economy.
The president of Piraeus Bank Mr. Michalis Sallas has described such a complete model for the restructure of the private sector of the economy.
It is now up to the other banks to take similar initiatives, so that they may coordinate and complete the organized restructuring that the country do desperately needs.
The vultures should not and cannot suit us.
TO VIMA
