A moral clause

The decision to exclude from state loan guarantees any enterprises that had outstanding debts before the coronavirus crisis, or had been funded through a state guarantee but became insolvent, was a necessary one.

The rule will ensure that strategic defaulters will not seek to take advantage of the crisis.

It also introduces a moral clause - sending a signal to the market and society that financial support will be given to troubled businesses on the basis of fairness; the money will go where it is needed to save jobs.

Greek taxpayers will feel assured that their money will not be used to finance zombie enterprises.