The government and the bankers decided:
- Support and loans to businesses up to the amount of 18 billion euros (16 from the banks plus 2 from the State) and an additional 7 billion euros to individuals through housing, consumer, cards
- On the table, the acceleration of procedures and the limitation of supporting documents. Less bureaucracy and greater flexibility in procedures, so that as much liquidity as possible can be channeled quickly to businesses and households, the government has asked Greek banks.
In the meeting that took place via video conference under Prime Minister Kyriakos Mitsotakis, the managing directors of the banks informed that the financing until the end of the year will reach 25 billion euros, including the guarantees and liquidity programs of the State. Banks estimate disbursements to businesses at 18 billion euros and another 7 billion to private individuals. However, since the beginning of the fiscal year, disbursements to households and businesses amount to 3 billion euros.
"We must absorb the shocks as best as possible and lay the foundations for a dynamic restart," said the prime minister, while the governor of the Central Bank, Yiannis Stournaras, underlined that with the reduction of the capital ratios by the ECB, funds of 3 billion euros are released from the banks, which with leverage end up being 30 billion euros.
According to the data presented during the meeting, 7 billion euros will be given by the Hellenic Development Bank and this amount includes guarantees of 2 billion euros. One billion euros are the loans guaranteed by TEPIX, the so-called TEPIX II program, of which 400 million euros concern State guarantees.
The State also subsidizes with 1.2 billion euros the interest of the companies' current loans, 1 billion euros are received by the companies as a refundable advance, while loan installments amounting to 1 billion euros are in a suspended payment regime.
The banks will allocate, in addition to the aforementioned funds, another 7 billion to businesses, so that they receive support and loans up to the amount of 18 billion euros (16 from the banks plus 2 from the State) and an additional 7 billion euros to individuals through housing, consumer, cards.
On the issue of speeding up the procedures, a committee will be immediately set up under the auspices of the Bank of Greece to study the limitation of supporting documents, which today averages around 20. However, the banks, as well as the supervisor, i.e. the Bank of Greece - made it clear that banking criteria and legalization documents cannot be overlooked. According to information, there are not a few who are trying to take advantage of this crisis and "cover up" their... sinful past with "other people's money", i.e. the taxpayers.
Source: Independent Cooperative Newspaper efsyn