The single-point-of-entry approach does not involve a government guarantee that subsidizes systemic financial firms by protecting their investors from downside risk. The resolution would result in a recapitalization of a failed firm by the firm’s own investors.
This became necessary owing to the very substantial amount of official financing that will be channelled through the existing Greek institutions, in particular the Hellenic Financial Stability Fund. Conclusion Let me conclude with a message of hope. Yes, the medicine is bitter, but the patient can and will recover if he follows the prescription.