German bank federation hails Greek rescue plan

22nd July 2011, Comments 0 comments

The German federation of private banks BdB welcomed a new rescue plan for Greece on Friday, calling it an important step ahead.

"The European summit yesterday was an important step forward," BdB president Michael Kemmer was quoted by a statement as saying.

"Greece now has enough time to make essential structural reforms," he added.

Eurozone leaders agreed on Thursday to a new Greek rescue package worth some 158.6 billion euros ($228 billion), including around 49.6 billion expected to come from the private sector.

The deal should ease financial market volatility that has pushed down the share prices of many banks.

And a decision to allow the European Financial Stability Facility (EFSF) to purchase government bonds "sets a cap for the development of monetary union" and "will free the European Central Bank from buying bonds on secondary markets, reinforcing its independence in the long run," Kemmer forecast.

He noted meanwhile that private sector involvement in the rescue "remains limited to Greece and is not a model for other crisis cases."

© 2011 AFP

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