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Greeces EUR28 Billion Support Plan Smoothly Implemented

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Greeces EUR28 billion support plan for the banking sector is being smoothly implemented, Economy and Finance Minister, George Alogoskoufis and the Governor of Bank of Greece, George Provolopoulos stated today.

Quite a number of banks have scheduled extraordinary shareholder meetings within January 2009, so as to receive the necessary approvals for the governments support plan, through the issue of preferred shares. Furthermore, local financial institutions have asked the Bank of Greece, to issue preferred bonds in accordance to the new law.

George Alogoskoufis has already approved the issue of EUR 2.01 billion euro special government bonds for two Greek financial institutions, in order to boost liquidity. In addition, the central bank is looking into requests submitted by other credit institutions.

Greece is one of the first countries in Europe to apply the Liquidity Plan in order to reinforce its real economy. Through the liquidity increase, that may reach EUR28 billion, the funding of households and small businesses is facilitated. An increase in the financing of small and medium sized enterprises, housing loans and companies vital for the economic growth of the country is strongly emphasized. Through this Support Plan, growth and employment are being reinforced in a truly unfavorable international financial condition, according to the ministrys statement.
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