Merler, Sylvia, (2015), “Preserving the Greek financial sector: options for recap and assistance”, Bruegel publications, 13 July
The draft text discussed in the Eurogroup yesterday suggests that the potential package for Greece would include 10 to 25bn for the banking sector in order to address potential recapitalisation needs. Rumours this morning suggest the banks would then become part of a new asset fund and sold off to pay down debt. Recapitalisation can be done in different ways, with different consequences. Here, I compare four possible scenarios to recapitalise the Greek banks.
Relevant Posts
- Terzi, Alesio, O’ Keeffe, Michael, (2015), “The political economy of financial crisis policy”, Bruegel publications, 8 July
- Pagliari, S., Vallée, S. & Monnet, E. (2014) “Europe between financial repression and regulatory capture“, Working Paper 2014/08, Bruegel Think Tank, 10 July.