Incentives for the merger of companies with bad loans

The new bankruptcy law that the government is working on will offer incentives for the merger of companies that have nonperforming corporate loans entering a restructuring process, according to sources. The aim is to have the bill voted into law by the end of April, in line with the country's pledges in the process of the post-bailout enhanced surveillance.

The new bankruptcy code is for the time being the main focus of interest for the country's creditors, as was signaled last week during the visits to Athens by European Economy Commissioner Paolo Gentiloni and European Central Bank Vice President Luis de Guindos.

It has become clear that the path to the favorable examination of Athens' request for additional fiscal leeway, however this is secured, will entail the passing of a satisfactory new bankruptcy law and the full abolition of the protection of debtors' main...