Greece’s partners have warned that no funds would be released for the purpose of recapitalising the Greek banking system if measures were not adopted to deal with the issue of the non-performing loans. According to newspaper “Kathimerini”, the institutions issued a stark warning that the Greek government would have to take immediate initiatives to address the pending problem of the non-performing loans in the country’s banking system in order to receive a new series of funds from its EU partners to support Greek banks. Sources from Brussels and Berlin sent a message to Athens that despite legislative moves by the Greek government, the matter had still not been resolved, which resulted in the real economy being starved of cash. The same sources in the event a new round of recapitalisation was necessary for Greek banks, this would be achieved in accordance to the new European directive in effect since the start of 2016, which means that banks would be supported through what is known as a “bail in”.
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