Wednesday October 22, 2014 Search
Weather | Athens
24o C
11o 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)  
Credit sector officials sleeping easy ahead of stress test results
Certainty on primary surplus target
Feverish talks on payment plan proposals
TUI promises even more tourists
Archaeologists find missing head of Amphipolis sphinx
Archaeologists digging at a tomb dating to the era of Alexander the Great in ancient Amphipolis in northern Greece have found the missing head of one of the two sphinxes guarding the entranc...
Coalition leaders prepare for troika amid sour mood
A dispute between New Democracy and PASOK over civil servants’ salaries continued Tuesday, underlining the big task facing Prime Minister Antonis Samaras and Deputy Prime Minister Evangelos ...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
COMMENTARY
The ECB collateral for Greece must be lowered to 5 pct
According to recent reports, the European Central Bank plans to reduce the “57 percent penalty,” that is the discount applied to almost all Greek government bonds (GGBs) held as collateral b...
INTERVIEW
The past, present and future of the Greek debt crisis
For a decade, until mid-2012, Josef Ackermann was the CEO at Deutsche Bank. It was a position that earned him the nickname “shadow chancellor” of Germany and allowed him to play a decisive r...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Credit sector officials sleeping easy ahead of stress test results
2. Certainty on primary surplus target
3. Feverish talks on payment plan proposals
4. TUI promises even more tourists
5. Archaeologists find missing head of Amphipolis sphinx
6. Coalition leaders prepare for troika amid sour mood
more news
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Gang importing heroin into Greece busted
3. Greece said to seek tailor-made plan for bailout exit
4. Self-opposing coalition
5. Gutsy rectors
6. Applications for heating oil subsidy set to start
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Coalition shooting itself in the foot
4. GPO poll gives SYRIZA clear lead over New Democracy
5. Greece must stick to reforms, says Schaeuble
6. Greece’s closed society is central to its current malaise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.