Business: Greek government bails out country's banking sector

14/11/2008

The banking sector in Greece will receive a 28 billion-euro rescue plan. Also in the news: Croatia's prime minister announces restrictive new economic measures for 2009, and the Serbian government again attempts to privatise the RTB Bor mining complex.

Some Greek opposition party members are protesting Athens' 28 billion-euro bailout of the banking sector. [Getty Images]

Banks in Greece will support the government's 28 billion-euro rescue plan, the governor of the National Bank of Greece, Takis Arapoglou, said on Monday (November 10th). In October, the cabinet pledged up to 28 billion euros to help its country's banking sector cope with the international financial crisis. The government offered a state guarantee worth 15 billion euros to all financial institutions in the country.

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Croatian Prime Minister Ivo Sanader announced economic measures in response to the global credit crisis Thursday (November 13th). At a closed meeting with trade union leaders, employer associations' representatives and regional associations' representatives, Sanader announced a freeze on all public sector wages in 2009.

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The Serbian government launched another attempt to privatise the RTB Bor mining complex Saturday (November 8th). The company has an outstanding debt of 500m euros to the state, which will undergo recapitalisation prior to the sale. The state will remain a minority shareholder for at least five years.

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Bosnia and Herzegovina (BiH) presidency member Haris Silajdzic and Kuwaiti Prime Minister Naseer Al-Sabah signed a 30m-euro agreement financing BiH's infrastructure. The credits, granted by the Kuwaiti Fund for Development, will finance BiH infrastructure projects, namely, the Sarajevo-Tuzla road network and a motorway along the VC Corridor.

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Pristina International Airport registered its millionth passenger on Tuesday (November 11th) since the beginning of 2008. Managing Director Agron Mustafa said the milestone was a key objective. Airport officials estimate 1.2 million travellers will pass through their facility this year.

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The international food giant Kraft will shut down its manufacturing operations in Romania and partly relocate to Bulgaria. The Kraft factory in Brasov, Romania, which currently employs 440 workers, will shut down in 2009. The company's corporate manager in Romania, Doina Kavake, denied any connection between the decision and the global financial crisis.

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The IMF on Tuesday (November 11th) recommended that Albania strengthen its monitoring of the economy to protect itself against the global financial crisis. IMF mission chief Gerwin Bell urged authorities against raising energy prices and warned of a likely decline in exports and foreign investment.

(Various sources – 07/11/08-14/11/08)