Greek parliament discusses 28 billion-euro bank bailout

19/11/2008

ATHENS, Greece -- Parliament on Tuesday (November 18th) started debating a 28 billion-euro aid package to help the banking sector cope with the international financial crisis. The bill envisions offering a state guarantee worth 15 billion euros to all financial institutions in the country, as well as issuing special bonds to financial institutions, in return for adequate collateral. The government will also offer up to 5 billion euros to strengthen the banks' capital base. Last week, the governor of the National Bank of Greece, Takis Arapoglou, said all Greek banks agreed to support the bailout. The main opposition party, PASOK, however, said on Tuesday it would vote against the draft, which it described as "ill-conceived".

In other news, the government has drafted a package of measures to ease prison overcrowding and reduce sentences for hundreds of inmates, particularly drug addicts who need rehabilitation. Justice Minister Sotiris Hatzigakis plans to submit the package to parliament Wednesday. Around 7,000 prison inmates started a mass hunger strike two weeks ago to protest conditions. (Ta nea, Elefterotypia - 19/11/08; ANA-MPA, In.news, Kathimerini, Naftemporiki, ERT - 18/11/08)