ECONOMY

Bank officials blast PSI+ plan

Greek bank officials on Tuesday branded the new private sector involvement plan (PSI+) for the reduction of Greek debt ?a bad moment for the European Union.?

Pavlos Mylonas, director of strategy and governance at National Bank, questioned what would happen if the banks? response were not up to the desired level, while the vice president of the Credit Stability Fund, Charalambos Kyrkos, said the decision for the involvement of the private sector ?led to rendering the eurozone bonds junk by shaking confidence.?

Alpha Bank?s chief economist Michalis Masourakis said the government?s requirements are diametrically opposite the interests of the banks and for the PSI+ program to succeed it would take mutual concessions. He went on to brand the decision for PSI+ ?an unfortunate moment for Greece.?

On the other hand, Miranda Xafa, former alternate executive director of the International Monetary Fund, noted that even if the involvement of the private sector is not voluntary, it will not be the end of the world.