Greek Parliament Approves Plan To Fight Bad Debts

The Greek Parliament approved the bill on asset protection program Hercules aimed to combat non-performing loans.

The bill was passed by the votes of the ruling New Democracy Party. The remaining parties voted against. Party MEPA25 of the former Minister of Finance Yanis Varoufakis left the vote, according to the Athens news agency AMNA.

The Minister of Finance Christos Staikouras, introducing the plan, said that the reduction of non-performing loans is perhaps the biggest problem for the resumption of lending, to ensure high sustainable economic growth, for domestic and international investment, as well as to use the country’s economic resources.

« The government’s economic bloc is fulfilling yet another program commitment. The last is for 2019. Let me remind you that 13 more program obligations were fulfilled in just five months, » said the minister, the text of whose speech was published by the press service of the Ministry of Finance.

Among the fulfilled obligations, he called the successful completion of the fourth assessment of the country within the framework of enhanced supervision of creditors, a reduction in property tax, an improvement in the taxation structure of citizens, the abolition of capital controls introduced in 2015, repayment of the expensive part of IMF loans, an emergency program of about 250 thousand Greeks, the tax reform.

According to him, reducing a large number of non-performing loans as a systematic solution to this problem, adapted to the situation both in the Greek economy and in the national banking system, will increase stability and confidence in the financial system, improve the performance of banks and the quality of their loan portfolio.


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