Election Makes Saving Banks Swansong for Papademos: Euro Credit
This article is for subscribers only.
As Greeks prepare for an election that’s unlikely to produce a clear winner, interim Prime Minister Lucas Papademos is struggling to complete his final major task: stopping banks from falling into state hands.
The government approved a law last week setting the framework for the Hellenic Financial Stability Fund, the state’s recapitalization fund. It included the authorization to give banks capital upfront and a possible plan to enable them to book smaller losses on the bonds issued in last month’s debt swap.