Handle banks with care
Under no circumstances should Greek banks be held hostage to the discussions between the Greek government and the country’s international lenders. The country needs private banks to function and the opportunity for their further recapitalization must not be missed.
The exaggerations on the part of the lenders regarding the banking sector’s likely recapitalization needs are stoking uncertainty to a dangerous degree.
The stabilization of the economy and the progress of the huge fiscal adjustment should not be undermined by poor handling of the banking sector.