Greece’s plan C to free banks from debt mountain
As banking shares continue their downward slide, Greece looks to Cyprus for a new solution
Athens — Greece is trying everything to get its banks back on track, including a direct subsidy to some of their most troubled customers. The government is working on a plan to lessen the burden for borrowers of modest means who cannot repay their debts, according to two people familiar with the project. Though it is not clear how many borrowers would benefit, the aim is to turn as many of their non-performing loans to performing loans as possible, helping the banks, the people said, requesting anonymity as the discussions are ongoing. Repayments by individuals who want to pay but cannot would be restructured into manageable installments, partially subsidised by the Greek state, one person said. While the proposal is in a preliminary stage and details have not been worked out, it should be ready in December, the person said. Greece needs to unshackle its banks from the bad-loan burden to help revive its economy. Last week, Greek authorities were said to be moving forward with two ot...
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