Greece’s real economy will never be able to get back on the path to growth unless someone cuts the Gordian knot of nonperforming loans. For this to happen, however, the country’s lenders will need certain legal safeguards that will allow them to open the way.
The fact is that no banking official is prepared at this point to sign any decisions allowing a write-off of debts or the restructuring of troubled businesses simply because they are afraid – and rightfully so – of coming into the crosshairs of the justice system.
There have, of course, been cases in the past when public money was pilfered with the help of bankers and there should indeed be no tolerance for such phenomena when corruption or some other relationship of dependence has been proven.
But if Greece wants to turn over a new leaf and get its banking system back on its feet, banking officials need to be able to do their jobs with the necessary legal protection from Parliament.