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European Central Bank criticizes Katseli’s measures for regulation of the financial debts

14 January 2010 / 14:01:40  GRReporter
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Some serious critics were made by the European Central Bank (ECB) in regards to the content of the two bills for regulating or the financial duties of corporations and households. According to the European experts if the two new bills are accepted in they are currently written they will have an effect exactly the opposite of the desired one. Their application could jeopardize the liquidity of the market not only in Greece, but also abroad. Besides this the measures contradict to the principles of the free market economy.

In its report the European central bank calls the Greek government to stop the process of public debate of the two bills as well as to give a chance of a competent national body (in this case the Ministry for the Economy, Competition and Merchant Marine) to get acquainted with the opinion of the European financial experts. The main threat according to the ECB is that stimulus will be created for the encouragement of dishonest payers which in the report is defined as a “moral hazard”.

On the other hand the government of the Ministry of economy, competition and Merchant Marine in the face of Louka Katseli undertook diametrically opposite actions by introducing on Wednesday in the Parliament the bill for regulation of the financial duties of corporations. In an official announcement Minister Katseli notices that the recommendations of the ECB have been taken under consideration and there are no risks of financial instability related to the introduction of the bill.

Some of the main remarks in the report of the European Central Bank are related to more clear and specific formulating of the criteria which a corporation in debt has to meet in order to take advantage of the new law. Another remark of the European financial experts is related to the fact that in the period of the differed payments according to the new law serious problems will be created in the securitization of the credits and the insurance of a better liquidity of their assets. A threat to the business climate in Greece is considered also to be the deletion of data from the list of the dishonest payers “Tiresia”.

Tags: PoliticsSocietyEconomyMarkets
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