Banks are dragging their feet

“Banks are boycotting aid to Greece,” leads the Financial Times Deutschland, explaining that the German financial sector is demanding “state guarantees” and “certain securities” in exchange for its help in solving the crisis. Currently, the rescue plan envisages the euro zone member states putting up half of the 120 billion euros to be extended to Athens until 2014, while the other half is to come from privatisation revenues in Greece (30 billion) and from private creditors, banks, investment funds and insurance companies (another 30 billion). German Finance Minister Wolfgang Schäuble wants to “conduct confidential interviews with banks to see what can be expected” by July 3, when the 27 states will decide if they will pay the next tranche of 12 billion euros to Greece. Economist Nouriel Roubini, however, noted in a panel discussion that the public sector is beginning to run out of ways “to make creditors accept their responsibilities.”