COMMENT

Private banks key to recovery

It is extremely important for Greece to have at least two large and completely private banks. It is absolutely necessary for the private sector to be able to do business with a lender that understands how the market works and is more open to taking risks involving business ventures.

Greece should not be allowed to return to the days when it only had state-owned banks that adopted policy and made operational decisions based on what whoever was in government at the time wanted and pressure from influential cadres in political parties.

But for Greece’s private banks to survive, the recapitalization plan must be pushed through so that the lenders that have what it takes to make it can free themselves from the state completely.

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