Sunday, September 18, 2016
Greek Government, Central Bank Seek to Defuse Tension over Lender
Wall Street Journal
September 18, 2016
Greece’s government and central bank sought to defuse a power struggle over a troubled lender, which has reignited tensions between the central bank and the ruling left-wing Syriza party.
Prime Minister Alexis Tsipras met with Bank of Greece Governor Yannis Stournaras on Saturday in a bid to smooth a row over who should run Attica Bank, a lender that finances public-works contractors, 57% of whose loans are nonperforming.
“There is no plan to sideline me,” Mr. Stournaras told reporters, responding to suggestions that the government was seeking to weaken the independent central bank. A senior government official said there were “no shadows” over relations with the Bank of Greece.
The spat escalated in recent days when police raided a business owned by Mr. Stournaras’s wife, the morning after Mr. Stournaras had told the government he wouldn’t approve its preferred candidate for chief executive of Attica Bank.
Posted by Yulie Foka-Kavalieraki at 9:44 PM