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live SYRIZA: State control of banks and debt moratorium

08 May 2012 / 15:05:48  GRReporter
3821 reads

Greek people gave a mature and responsible vote, which shows that they do not want the austerity measures and the economic cuts set in the bailout agreement, Tsipras said after receiving the mandate to form a government. He called Samaras and Venizelos to send new letters to the institutional creditors of Greece in Brussels and Washington stating that they will not meet their obligations under the bailout agreement.

The leader of the radical left requested an immediate cancellation of the laws on layoffs and labour market reforms and state control of the banking market. SYRIZA’s representative Dimitris Stavroulis said for radio Vima 99.5, "We guarantee that citizens' deposits will be used for the economic development of the country and for the recovery of its production."

According to SYRIZA, Greek banks do not need recapitalization, as they have around 165 billion euro in individual and corporate deposits. Once banks are under state control (nationalization), these funds will be allocated as "investment" in production. Here's what Dimitris Stavroulis said for Vima:

Let us assume that we refuse the Memorandum, technically and economically. How would you proceed with the banks? Banks will end up with empty hands without the Memorandum.

They will not end up with empty hands. Banks already have 165 billion euro in Greek citizens’ deposits.

This is our money not the banks.

Through direct control of banks, we guarantee the deposits of citizens and we will use this money for development and for reconstructing production in the country.

So, do you mean you will attach individual deposits?

We mean that we will guarantee them, we will not levy a distrain upon them.

In this case, how will you use it for economic growth since citizens own the money in banks?

What else should it be used for if not for economic growth? Up to now, it was used for the distribution of profits among the shareholders of banks. Shouldn’t the banks provide liquidity, lend to small and medium enterprises, give loans to people to build houses or give consumer loans? It's all about political will.

Of course, it (the money from bank deposits) will be used to restore pensions, reduce the debt burden of citizens and for investments.

Do you intend to restore wages and cancel pension cuts with this money?

This is obvious. Isn’t this the election purpose for which SYRIZA was elected? When we say we will use the money in banks for economic development, we mean to support social, public and private – I would like to emphasize private - investments in order to restore the productive power of the state.

Do you mean the deposited money, our money, of the citizens?

Why, don’t banks do the same?

 

 

Tags: PoliticsSYRIZATsiprasNationalizationBanksGreeceMoratorium
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