Friday May 29, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Lasting dividend of bank aid

 Alogoskoufis law of 2008 not only supported the credit sector but has also been boosting budget revenues

By Yiannis Papadoyiannis & Sotiris Nikas

Over 4 billion euros in revenues has been credited to the state budget since 2008 stemming from the support the state has been providing to Greek banks since the start of the recession. These revenues derive from dividends, commissions and payments to the state by domestic lenders in return for assistance both in cash and capital.

The state assistance was granted to banks in 2008 in order to reduce the impact of the global financial crisis on the local credit sector, and although this was not primarily intended to bring profits to the state budget, the amount of 4 billion euros comprises a significant addition to budget revenues.

The European Commission report attached to the recently revised bailout agreement acknowledged that Greece’s state revenues from banks were one of the most important factors in the creation of a primary surplus.

Finance Ministry officials note that after 2008 and the law introduced by then minister Giorgos Alogoskoufis that triggered the state support to Greek banks, the cash assistance exceeded 140 billion euros at the peak of the crisis and mostly concerned the supply of collateral from the state to banks. Given that there has been no collateral forfeiture and banks are servicing all their obligations, the state has collected over 4 billion euros for its support.

The collateral of 140 billion euros did not constitute a cash injection from the state to the banks, but rather a written guarantee from the state thanks to which banks were able to draw vital liquidity from the European Central Bank. The Greek credit sector managed to handle the major flight of deposits during the crisis and the exclusion of domestic banks from international markets with the Eurosystem cash flow.

According to ministry figures, the total in collateral has dropped from a peak of 140 billion euros to 48.9 billion in the first quarter of 2014, as banks have returned some 90 billion of the collateral they had received from the state thanks to the improvement in liquidity conditions.

ekathimerini.com , Wednesday May 7, 2014 (23:08)  
Next Greek aid program isn’t on table yet, says Moscovici
Hoteliers seek VAT solutions
Chaos in the system for tax declarations
Lenders’ first-quarter data suffer from NPL expansion
Greece creditors say no deal near as G-7 frustration vented
Greece’s creditors said a deal to unlock rescue aid isn’t imminent as they demanded the debt-ravaged nation make stronger commitments to overhaul its economy. The Greek government saw its op...
PM speaks to Merkel, Hollande as lenders increase pressure
With negotiations between Greece and its creditors at a critical phase, Prime Minister Alexis Tsipras on Thursday sought the assistance of German Chancellor Angela Merkel and French Presiden...
Inside News
SOCCER
Panathinaikos conquers PAOK through Tavlaridis goal
A Stathis Tavlaridis goal has brought Panathinaikos to practically within one point from clinching a spot in next season’s Champions League qualifiers, as the Greens made it three out of thr...
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
Inside Sports
COMMENTARY
Only Greece can end its miserable ´Groundhog Day´
In the film "Groundhog Day," Bill Murray is condemned to relive the same 24 hours on an endless loop. The happy ending (he gets the girl) only comes when he changes his destiny by becoming a...
COMMENTARY
FIFA and fair play
Greeks must be among the less excited observers of the ferocious crackdown on the highest echelons of global soccer’s administrative body, FIFA: from the lowest leagues to our top teams, fro...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Next Greek aid program isn’t on table yet, says Moscovici
2. Greece creditors say no deal near as G-7 frustration vented
3. Hoteliers seek VAT solutions
4. Chaos in the system for tax declarations
5. Lenders’ first-quarter data suffer from NPL expansion
6. Regional airport concession deal ‘to be sealed soon’
more news
Today
This Week
1. Greece creditors say no deal near as G-7 frustration vented
2. Only Greece can end its miserable 'Groundhog Day'
3. Next Greek aid program isn’t on table yet, says Moscovici
4. Endless confusion and worry
5. G-7 weighs in on Greece as Tsipras government told to be serious
6. ECB's Nowotny says no to loosening funding for Greece now
Today
This Week
1. Hotel contracts with a ‘Greek default clause’
2. Some 300 mln left banks on Tuesday
3. Neither Grexit nor a dual currency will solve Greece’s problems
4. No more 'quick and dirty' fixes for Greece
5. Romantic notions meet reality
6. Tsipras faces down radicals within SYRIZA over terms of deal
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.