Financial Stability Fund has been assigned increased responsibilities.
It is stated that the government is strengthening the support mechanism with an extra 30 billion euro guarantee. If any financial institution wants to use it though, the representative of the Greek State:
-Acquires additional powers and full freedom in overseeing the implementation of measures to strengthen the bank. He is given access, other than to books and records, to the restructuring and sustainability and medium term plans for the financial needs of each bank, as well as the financing provided to the real economy.
-Acquires veto rights, even in terms of the Governing Council's decisions, concerning the legal or financial situation of the institution, e.g. decisions to merge with another institution or acquisition of another institution.
Finally, if the Financial institutions are to pay dividends, they are required to distribute shares instead of dividends
At the same time, the Deposits and Loans Fund is being split into a sector for commercial activities and a sector for industry, which will secede from the Fundwithin two years, in a development that hints at privatization.
Moreover, for reasons of competition, the "subsidy" of services provided by the Deposits and Loans Fund in the open market is prohibited.
Other provisions:
Control committees are to be placed in all public enterprises, especially for monitoring and control of their applied wage policies.
The bill also provides for:
-New responsibilities and powers in the Public Debt Management Agency (PDMA), so that it can intervene in the secondary bond market.
- The establishment of a General Secretariat of Public Property, to collect the diffused responsibilities of protecting public land and supervising the use of public property and national heritage. The creation of the Public Property Secretariat is to better and more efficiently coordinate these functions.
by Kostis Plantzos
source: PROTO THEMA
