Athens News Agency: News in English, 10-07-14

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] ND: Reforms 'admission of social bankruptcy'

[02] Greek bankers optimistic

[01] ND: Reforms 'admission of social bankruptcy'

"There is another way, proposed by ND, with specific measures that will bring the country out of the terms of the Memorandum in two years," he emphasised. (ANA-MPA)

The claim earned an angry response from Finance Minister George Papaconstantinou, who accused him of resorting to "fairy tales" and "beads and mirrors" to buy political time.

In his speech, Samaras noted that successive governments had failed to address the problems of the social insurance system but claimed that the present government had essentially given up the effort, since its measures did not seek to either improve the system, nor give incentives for dealing with the country's demographic problem nor created incentives for employment. (ANA-MPA)

[02] Greek bankers optimistic

Speaking in a parliamentary committee, Vasilis Rapanos, president of the Hellenic Bank Association, said the Greek banking system showed significant resistance to the international financial crisis because they were not exposed or invested to toxic products. (ANA-MPA)

"Following the signing of a memorandum with the troika, the risks were smaller. We believe that Greek banks will pass the stress tests without any problems as they continue to enjoy a healthy basis and capital adequacy, supported by the stateās fundamental intervention with the first and second support package and the approval of a Financial Stability Fund," Rapanos said. (ANA-MPA)

He stressed that banks faced problems with saving deposits and loan portfolios and noted that liquidity problems faced by banks were attributed to the closure of interbank markets as a result of the downgrading of the Greek economy.

Rapanos said saving deposits fell around 15 billion euros in the first half of 2010, but stressed that this trend began slowing since June. He reiterated that the Greek banksā capital adequacy ratios were fully satisfactory.

He acknowledged that banks have made mistakes but underlined that the banking system has helped enormously Greek households.

Nikos Nanopoulos, vice-president of the association, announced an adjustment of saving deposit interest rates, to be more in line with European rates and said that despite any liquidity problems, credit expansion rates remained positive on an annual basis, in contrast with the rest of the Eurozone, with consumer loans only recording negative rates. (ANA-MPA)

Responding to deputiesā questions, Rapanos said National Bank was not examining any merger plans.

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