The rules set out by Greece’s creditors with regard to the management of the country’s banks need to change. They are completely dysfunctional and often result in important responsibilities being assigned to people who are, quite frankly, just not up to the task.
However, the reason why we have people of uncertain quality taking on important roles is due to the many oversights and sins of the past. Change is essential if we don’t want these to be repeated, but we also shouldn’t return to the time when whichever government was in power was able to control the flow of loans and appoint senior staff, effectively running the banks.
Foreign creditors are terrified that such a scenario might unfold, and rightly so, as the government appears oblivious to the risks at such an important time.