From The Washington PostBy Cornel Ban and Kevin GallagherDecember 17, 2014 Cornel Ban...
State Aid N 560 /2008 – GREECE Support Measures for the Credit Institutions in Greece
This decision involves a package of measures designed to bring stability to the Greek financial system.
- Specifies that the law is only applicable to credit institutions
- Credit institutions will obtain a tier 1 capital ratio above 8%, to be maintained for the duration of the scheme
- Stipulates behavioral conditions for participating institutions
- Stipulates criteria to determine amount to be distributed per financial institution
- Discusses special purpose securities to be lent to eligible credit institutions
- States the position of Greece in regards to the stipulations
- States that “only the borrowing of credit institutions can benefit from the guarantee scheme”
- States that purpose of bond loan scheme is to “to ensure that credit institutions have sufficient access to liquidity”