Friday, May 26, 2017
If two-thirds of creditors agree to the scheme by a July 13 meeting, the government will exchange IBA debt for sovereign loans but it has made it clear it does not bear responsibility for the state-owned bank's liabilities.
- Banking sector instability has negative implications for confidence and economic growth.
- The potential increases in sovereign debt appear manageable.
- Reducing the size of IBA will bring more competition to the banking system.