Development Minister Nikos Dendias stated on Wednesday, after a meeting with the head of the Athens Chamber of Commerce and Industry Constantinos Michalos that”insolvent debtors should not expect to be pardoned through a regulation for red loans.”

When asked by a journalist when the final draft of the regulation would be presented, the minister said the government will put it forward before the Thessaloniki International Trade Fair, but it would still need to be approved by the Troika.

Mr. Dendias noted that the regulation was not related to the European Central Bank’s stress tests because the plan will not affect the banks’ capital adequacy.

Apart from the main issues of the Red loans and the Greek businesses’ liquidity constraints the two officials also discussed during the meeting the impact of the Russian embargo on Greek economy, the tax framework for businesses and the General Commercial Registry (GEMH) operation.

Regarding the Russian embargo, they discussed the way the European Union can help Greek businesses. Mr. Michalos pointed out that it is a geopolitical crisis which will last for a long period of time.

He also referred to the embargo impact on other Balkan countries, where Greek businesses are active, adding that lower consumer demand in those markets will affect the Greek economy.