Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive.
Greece needs a healthy, private banking sector if it wants to increase growth and boost entrepreneurship as it tries to recover from the crisis.
Should all of the four lenders that are undergoing the tests achieve positive results, they will emerge from the process stronger than before and will be in a position to implement bolder policies. They will have to decide which businesses that have accrued large debts should be given a helping hand and propped up and which are beyond salvation. Such decisions are already long overdue, but come Monday the banks will have run out of excuses.
