Thursday Jul 24, 2014 Search
Weather | Athens
32o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG: Credit by natural selection

 Provopoulos calls on local bankers to fund the robust enterprises and let the weak companies die out

By Yiannis Papadoyiannis

Bank of Greece Governor Giorgos Provopoulos called on the country’s commercial lenders to stop funding moribund companies and focus on more robust corporations that can help the economy grow.

Addressing an event organized by the Hellenic Federation of Enterprises (SEV) on Wednesday, the central banker said: “The conditions of plentiful and often flexible bank funding cannot and should not be repeated. It would be pointless and dangerous to allow permanently weak, undercapitalized and overindebted enterprises to continue operating. New credit should be extended to dynamic enterprises with a highly export-oriented character and with growth prospects.”

Provopoulos further called on lenders to take initiatives for the restructuring of the country’s economy: “The banking system can constitute an important transition lever toward the new growth model that the economy is in need of.”

“Nowadays the credit sector may be the only part of the economy that has been fully restructured and recapitalized. The new banking system is now based on firmer ground. No other domain has seen restructuring on such a scale, or even close, even though the unprecedented conditions demanded it. This experience of banks may prove precious also for the enterprises in the other sectors and domains of our economy. Banks are therefore invited to contribute substantially to the effort to reorganize production,” said Provopoulos.

Likewise, Piraeus Bank head Michalis Sallas stressed that helping any non-competitive enterprises to survive undermines the interests of the economy. The president of the country’s biggest lender said that the efforts to restructure the economy cannot possibly be restricted only to state interventions, adding that the responsibility for the restructuring and modernization of the production base mainly lies with private initiatives.

The chief executive of Piraeus group subsidiary Geniki Bank, Nikolaos Karamouzis, echoed Sallas, saying that banks should gradually focus on the management of tomorrow and not on that of yesterday.

ekathimerini.com , Wednesday Jan 15, 2014 (22:34)  
Eurozone bonds yields rise on strong data, dulling QE prospects
PPC approves $243 million wind investment in Greece
No property transactions for tax evaders
IOBE warns crisis will return if reforms are not implemented
Boutaris plans Islamic art museum for Thessaloniki
Thessaloniki Mayor Yannis Boutaris on Thursday announced plans to establish a museum of Islamic art in Greece’s northern port city. Boutaris, who was re-elected in May, told Kathimerini he h...
PM, Venizelos meet as Administrative Reform Ministry eases stance on evaluation
Coalition leaders sought on Thursday to defuse tension that has built up between New Democracy and PASOK as a result of the assessment of public servants’ performance, with the Administrativ...
Inside News
TRACK & FIELD
Athens, the Marathon capital of the world for good
Paco Borao, the man who restored Athens as the Marathon capital of the world with the establishment at the Olympic Sports Center of the headquarters of the International Association of Marat...
TRACK & FIELD
Pole vault record on same day as three doping cases
Greek track and field had a mixed weekend, as on the same day as Katerina Stefanidi matched the national record in pole vault as well as the leading result in Europe so far this season, thre...
Inside Sports
COMMENTARY
When evaluation is seen as useless
The reactions toward the government’s plans for an evaluation of public sector workers are completely unsurprising. Civil servants – and not just the unions that represent them – abhor the m...
EDITORIAL
Playing the good guy
There is a part of the government that is striving to fulfill the commitments that Greece has undertaken toward its foreign creditors, most of which pertain to reforms that are absolutely es...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Boutaris plans Islamic art museum for Thessaloniki
2. PM, Venizelos meet as Administrative Reform Ministry eases stance on evaluation
3. Activists launch flotilla against Syria chemicals
4. Greek leaders mark 40th anniversary of the fall of the junta
5. Policeman among other eight arrested for antiquities trafficking
6. Council of State deems university reform plan legal
more news
Today
This Week
1. Quadriplegic woman on life support 'dies due to unpaid power bills'
2. Democracy 'retreated' during crisis, says Papoulias
3. Efforts continue on Crete to find 'Sifis' the crocodile
4. Family of deceased woman on life support says application for 'special status' had been filed with PPC
5. Medical assistance for Acropolis visitors
6. Presidential election will not lead to snap elections, Samaras tells ND deputies
Today
This Week
1. The cost of excellence
2. Ex-Credit Suisse banker taps lesson for Greek rebound
3. Greece seen in third bailout as bonds not enough, economists say
4. Climber dies in Mount Olympus fall
5. Greek banks able to tap investors after stress tests, HFSF Says
6. Greek sovereign debt at 174.1 percent of GDP in first quarter
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.