The completion of local banks’ share capital increases has opened the door for foreign funds to buy Greek companies’ debts to domestic lenders.
The presence of foreign funds in the share capital increases signals the start of a cycle of restructuring in the market with corporate mergers and shutdowns, particularly in overindebted sectors such as the cold cuts market, publishing, information and entertainment, fish farming, car sales, food service, and healthcare services and equipment.
The strengthening of banks’ capital through funds from abroad means that the drastic measures needed in market restructuring, until now a taboo subject, are now up for discussion. The aim is to tidy up banks’ portfolios, which, under the weight of the economic recession and the sins of the past, are burdened with huge debts that cannot be serviced.
The shutdown of major enterprises in significant economic sectors is only a matter of time, as after eight years of crisis it has become clear that the domestic market cannot afford all the players who entered it during the years of plenty. Only the sustainable companies are going to stay open.