A serious threat

The problem of the nonperforming loans burdening Greek banks is nothing new. The fact that it remains unresolved so close to the next general election can be attributed to the dilatory tactics of a government that has been reluctant to bear the political cost of what would basically be a viable economic reform, one that would only bring benefits. 

However a unilateral solution to the problem, which is what the government appears to be aiming for at the moment, would pose a serious threat to the country’s emergence from its economic crisis, something that the leftist administration has been trumpeting for some time now. 

Playing up disagreements between government officials and representatives of the country’s international creditors and creating artificial tensions promises to have very serious repercussions at a time when the country is trying to convince the markets that it has finally regained its credibility.