Wall Street Journal
April 1, 2011
Greece's government has extended the powers it holds over banks benefiting from state aid, including the right to block mergers and acquisitions.
Those powers are being linked with a government plan to provide an additional €30 billion ($42.52 billion) in state guarantees to the banks, according to a draft law submitted late Thursday.
"The power to veto the board of directors has been extended with respect to decisions relating to the legal and financial situation of the institution such as decisions, for example, relating to a merger with another credit institution or the acquisition of another credit institution," the draft law stated.
The law also gives the government full access to banks' economic data, including restructuring and financing plans.
Since 2008, Greece's banks, including its six biggest lenders, have benefited from a series of support packages provided by the Greek government. That aid has been mainly aimed at boosting the banks' available liquidity along with the help of special European Central Bank liquidity measures.
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