Greek gov’t urges banks to participate in Hercules plan

Deputy Finance Minister Giorgos Zavvos on Thursday urged banks to participate in the government’s “Hercules” plan to reduce non-performing loans (NPLs) which has been approved by the European Commission.

He said the approval of the plan was a “national success” and noted that without the burdening of taxpayers and the state budget, banks will be offered the opportunity to reduce their NPLs by 30 billion euros or 40 pct. “The government has done its duty, it is time for banks to do theirs, by speeding up securitisation of NPLs,” he noted.

Zavvos also announced that the government was preparing legislation for the stock market and the Capital Market Commission, aimed at improving corporate governance and boosting transparency.

Referring to the Hercules plan, Zavvos said banks will have to pay a commission of only 1.8 pct for the 9.0 billion euros of state guarantees offered by the Greek State and stressed that this plan will not be paid in advance. The minister noted that inclusion of the bank in the Hercules plan will help Greek banks to successfully pass the next stress tests.