Putting off investors

The present and future of the Greek banking system is way too crucial and sensitive an issue to tamper with.

It really is too bad that for a considerable period of time the question of recapitalizing the country’s banks appeared to have become a bone of contention in the negotiations between the Greek government and the troika of foreign lenders.

Meanwhile, ongoing disagreements between different members of the troika on such a vital issue, the leaked predictions about capital needs and an endless parade of fatalistic forecasts regarding the fate of Greek banks are doing little service to an economy that is trying very hard to recover after six years of recession.

This dangerous mix is creating a climate of fear and of serious concern that is putting off would-be investors and throwing the system off balance.