OPINION

The ABCs of banking

Greece will never be able to enter a cycle of real growth unless it severs the Gordian knot of nonperforming loans. Hundreds of businesses have taken out loans from the country’s banks that they are unable to pay back, and solutions need to be found for both the banks and the indebted companies.

Of course these solutions need to be governed by strict rules and be closely supervised, because the possibility of some kind of manipulation of the system is very real. However, we have reached the other extreme. Soon, you won’t find a bank employee to sign such a decision for fear of accusations from other parties or judicial investigations.

Corruption needs to be uprooted where it grows, in kickbacks and privileged write-offs of small loans etc.

Without an understanding of the basic rules of banking, though, the economy will sink under the weight of companies that are collapsing because no one had the brass to make the necessary decisions.