New clash for bank control

The recapitalization of banks is one of the grey areas of the new memorandum.

This is apparent from the following two points: the first has to do with how the Greek government will ensure that the 48 billion required for all banking groups will be returned as soon as possible, as international firms count it as debt in their analyses.

The second point has to do with incentives to attract capital from private investors, who will want to know that they will have the chance to check on the banks after they put in additional funds.

So if for each share to be initially paid for they can get another four, as traders are letting on, then the remaining five will be controlled by the Financial Stability Fund or the State.

This is because according to preliminary information, they will be required first to meet 10% of all funds which will be needed from the PSI and the Blackrock findings.

Thus, the 90% which remains as the capacity for coverage at a later stage is being negotiated and is the first critical point for attracting private investment funds.

Market circles are asking why the BoG has not yet reported on the Blackrock findings. Speaking to protothema.gr, sources of the central bank also denied the validity of publications on the ratio of 4 shares for every additional one as far as initial increases go.

This week is crucial for the final version of the legislation.

It should be noted, however, that the real economy cannot keep up with the stalling of the political system again, since the completion of recapitalization is the crowning glory of restoring funds back into the market.