1 billion euro for businesses remains "parked" in banks

The government and the Task Force are applying pressure on banks to turn on the taps of liquidity for firms.

There was a meeting between representatives of Greek banks and Minister Anna Diamantopoulou this morning, with the participation of Horst Reichenbach, seeking to “drop” capital in markets, exceeding 1 billion, which remains firmly secured in bank vaults.

According to sources, the development minister urged the bankers to unblock the money, giving not only investment capital but also mainly the working capital needed by enterprises to achieve the desired liquidity to return to the Greek market. Mr. Reichenbach  reportedly insisted on the issue of increased collateral demanded by financial institutions.

Bankers, on their part, argued with the minister that:

- The EU programs for enterprises and public works are not yet up and running.
- There is great demand for loans (for investments) according to rumours.
- They are waiting for money from the EU investment bank, amounting to 600 million EUR, which will be unblocked when another rating agency - Standard and Poor’s for example - upgrades us, since this is mandated by the rules and procedures of the EIB.

The Ministry of Development and banks are agreeing that the money will be provided by ESPA and will double from the mixing of funds; thus, for every euro from ESPA, the market will make another euro.

It is worth noting that the capital is of low interest, with rates of around 5%-6%, which is a lure for healthy and sustainable businesses which are in need due to the situation.