A parliamentary committee on Wednesday approved with the votes of ruling New Democracy an asset protection scheme to help Greek banks to reduce their NPL ratios, amid protests from opposition parties that objected to fast-tracking the bill.
Main opposition SYRIZA, the Movement for Change (KINAL) and Greek Solution said they reserved their final decision until the debate in the Parliament plenum, while the Communist Party voted against it. MeRA25 left the debate in protest.
Deputy Finance Minister Giorgos Zavvos, responsible for the banking system, told MPs the bill is a crucial item of legislation addressing a systemic problem of the Greek economy and has to be voted into law before the vote on the 2020 budget.
“All the procedures were followed,” he said. “It was discussed with everyone – the Bank of Greece, the Hellenic Financial Stability Fund, with bank experts, we briefed the Commission. Any delay will not be in the benefit of the Greek banking system.”
"It is something that investors are waiting for with great anticipation.”
The EU-approved scheme involves banks transferring NPL exposures to a special-purpose vehicle (SPV). The SPV will then securitize these loans and sell notes to investors, with the Greek state guaranteeing the senior tranches.