Greece will set up a working group with officials from its “troika” of creditors to look at ways of supporting its fragile banking system after this month’s election, the economy ministry has said.
Greeks will go to the polls for their fifth time in six years on September 20, as the government seeks a fresh mandate to implement reforms demanded under the new €86-billion ($96-billion) international bailout.
“The economy ministry, in collaboration with Greece’s central bank, decided on Tuesday to establish a working group on the recapitalisation of the banks,” the ministry said in a statement yesterday.
The group will contain lawyers, experts and representatives from the European Union, European Central Bank and International Monetary Fund – the so-called “troika” of creditors loathed by many Greeks after years of painful austerity.
“The goal is that a framework for the recapitalisation is quickly set up so that the government elected on September 20 may have concrete proposals and it can make the right decisions,” added the statement.
Greece brought in capital controls at the end of June in a bid to stave off economic collapse, shutting banks and at one point limiting withdrawals to €60 per day, although these have gradually been lifted since.
Close to €25 billion has been set aside under the latest aid plan to recapitalise Greece’s ailing banks this year, although this amount could change depending on the outcome of stress tests being carried out by the ECB this month.