Friday October 31, 2014 Search
Weather | Athens
19o C
12o 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)  
Power rates soared 60 pct in six years
NBG chairman sees risks to recovery
Greek consumers shift toward money saving
IMF could offer know-how in backup plan for Greece
A year after GD members shot dead, police have no leads
A year after two members of neofascist Golden Dawn were shot dead outside the party’s offices in Neo Iraklio, north of Athens, police sources admitted that they have no leads to the killers....
No new Manolada trial, court rules
The Supreme Court has decided that four men who stood trial earlier this year for shooting 28 migrant workers at a strawberry farm in Nea Manolada in the Peloponnese should not be retried. S...
Inside News
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
SOCCER
Berg returns to add spice to Panathinaikos´s Cup win
The second round of games for the group stage of the Greek Cup produced plenty of interesting games and results in midweek, but it still lags the upset potential that the knock-out stages of...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
COMMENTARY
Time is running out in Afghanistan
Thirteen years after the attacks on the Twin Towers and NATO's entry into the war in Afghanistan, things remain pretty much unchanged: Political instability and insecurity  reign in the Cent...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Obradovic watches Greens thrash his Fenerbahce
2. Berg returns to add spice to Panathinaikos´s Cup win
3. Power rates soared 60 pct in six years
4. NBG chairman sees risks to recovery
5. Greek consumers shift toward money saving
6. IMF could offer know-how in backup plan for Greece
more news
Today
This Week
1. Greek euro dilemma is back as minister predicts volatility
2. Students hijack university senate meeting
3. Clientelism belongs to the past, says Mitsotakis
4. European stocks tumble as banks decline after Enria’s comments
5. Civil servants to be investigated for transferring money abroad
6. Over 1,500 buildings and vehicles damaged in flash floods
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.