[Brussels 10th Reuters]-The European Commission will offer illegal state support for the Greek government's plan to reduce the bank's bad debts by up to 30 billion euros (about 33,040 million dollars) on the 10th Judgment that it was not and approved.
Non-performing loans are expected to grow in Greek banks as a result of the financial crisis, and the total size of non-performing loans is estimated to be approximately 80 billion euros.
According to the Greek proposal, a special purpose entity (SPV) was established to transfer bad loans from banks. SPV will issue bonds to finance the purchase of bad debts, but will give government guarantees to senior tranches. The European Commission has determined that government involvement is limited.
