Finance minister outlines blueprint for credit sector

The initiatives that Minister of National Economy and Finance Kostis Hatzidakis will immediately undertake for the financial sector are moving along four main axes. They concern dealing with the gap between interest rates on loans and deposits; the most efficient management of private debt; the completion of the consolidation of banks from bad loans through the Hercules program; and the disinvestment of the state from banks.

The goal, as underlined by Hatzidakis in the context of the government policy declarations, is “a dynamic banking system and a robust capital market that can act as catalysts for the development process in the country.” These initiatives are expected to be discussed during the first scheduled meeting that Hatzidakis will have on Monday with banks’ top managers, during which the next moves to implement these goals will be specified.

In order to deal with the gap between interest rates on loans and deposits, measures are being planned which, according to the minister, “will strengthen competition.” Among them is the expansion of the provision of bank credit – i.e. more loans to the real economy.