Tsipras to Papademos: The people will change your decisions

SYRIZA president Alexis Tsipras is calling for a "freeze" in the discussions on the recapitalization of banks, in a letter sent today to Prime Minister Lucas Papademos, in which he suggests that the proposed solutions afavor the bankers.

Tsipras stresses in his letter that "knowing that you have important decisions to launch to support the bankers with the Greek taxpayers' money only a few days before the Greek people express their will at the polls, we ask of you, even now, to freeze these decisions. We believe that the promoted arrangements, under the guise of the recapitalization of banks, will rescue the bankers. Otherwise the decisions you will make now will change on May 6 by the people."

The SYRIZA president makes detailed reference to this issue, noting that his party wants a healthy and stable banking system, which will be a growth driver and stability factor and will ensure a friendly working environment for thousands of bank workers.

We understand the importance of an adequately capitalized banking system, Tsipras says, "especially in a period of deep crisis. But we must opose the plans of the government, the Troika and the administrators of banks to recapitalize the banking system, the way it is being promoted."

Unfortunately, Tsipras says, "we are faced with manipulation with the sole aim of saving the bankers and the shifting of rescue costs onto the backs of Greek taxpayers."

He clearly hints at lack of transparency, noting that despite the efforts of SYRIZA to inform the Greek people in a responsible manner, there is "radio silence" on issues of the funding of banks with borrowed public money, and asks Papademos to answer the following specific questions:

1.  How much money and in what form has been given to banks to date through the first support package of 28 billion euros, allocated by the Karamanlis government?

2.  Which banks have been financed and with how much money?

3.  Why has your government excluded the Agricultural Bank and the Postal Savings Bank from funding through the FSF (Financial Stability Fund) and what do your plans offer to these two banks?

4. Which conditions of the recapitalization of banks have been clarified to date, which pending issues remain unresolved and when do you believe that the terms will be finalized?

5.  The last IMF report (March 9, 2012) estimates that the amount of recapitalization will reach 50 billion euros. However, when these banks are returned to their shareholders, state revenue will be 16 billion. The difference of 34 billion will probably be passed onto the backs of taxpayers. What is the assessment and the decision of your government about the unsecured capital of 34 billion euros?

6. Since after the completion of the voluntary exchange of Greek government bonds (PSI) there has been no mention of the fate of pension funds, I ask you, Mr Prime Minister, if you have provided any funds for their recapitalization, combined with the recapitalization of banks, and if so, in which specific ways will you cover the damages suffered as a result of their participation in the PSI?