Greece to Offer $10 Billion to Help Banks Cut Down Bad Debt
- Banks will be able to use the guarantee plan for 18 months
- European authorities may approve program in coming weeks
Pedestrians enter a metro station in Athens.
Photographer: Kostas Tsironis/BloombergThis article is for subscribers only.
Greece plans to provide as much as 9 billion euros ($10 billion) in state guarantees to help its banks reduce a mountain of soured debt weighing on their balance sheets, according to two people with knowledge of the matter.
The initiative, similar to a successful program used in Italy, depends on antitrust officials in Europe ruling that it doesn’t constitute illegal state aid. A decision by the European Commission is expected over the next few weeks, the people said, asking not to be identified because the discussions are private.