GREECE Law and Practice Contributed by: Paris Tzoumas, Vivian Efthymiou and Dimitrios Mekakas, Zepos & Yannopoulos
asset management vehicles (the “asset sepa - ration” tool); or • the write-down and conversion powers in relation to the liabilities of a credit institution under resolution (“bail-in” tool). Other measures can be used to the extent that they conform to the principles and objectives of the resolution set out under the BRRD. In circumstances of extraordinary systemic crisis, the credit institution’s resolution may, as a last resort, involve government financial stabilisation tools consisting of public equity support and temporary public ownership tools. These meas - ures would nonetheless only become available if certain conditions are met, including that the credit institution’s shareholders and creditors bear losses equivalent to 8% of the credit insti - tution’s liabilities. A special commissioner may be appointed by the resolution authorities to replace the BoD of the credit institution under resolution. Principles – Protection of Depositors When applying the resolution tools and exercis - ing the resolution powers, the resolution authori - ties should take into account certain principles provided under the BRRD, including that: • the shareholders of the credit institution under resolution bear first losses; • the creditors of the credit institution under resolution bear losses after the sharehold- ers in accordance with the order of priority of their claims under normal insolvency pro - ceedings, save as expressly provided other - wise in Law 4335; • the creditors of the same class are treated in an equitable manner (unless otherwise provided);
• no creditor shall incur greater losses than would have been incurred if the credit institu - tion had been wound up under normal insol - vency proceedings; and • the covered deposits are fully protected. In any case, the eligible deposits held with the credit institutions will be protected up to EUR100,000 (covered deposits) and are there - fore excluded from the scope of application of the bail-in tool. If the credit institution’s authorisation is revoked, the credit institution will be mandatorily placed under a special liquidation in accordance with Law 4261. The provisions of the Greek Bank - ruptcy Code (Law 4738/2020, as amended) may apply additionally to the provisions of the special liquidation of a credit institution, to the extent that they do not contradict Article 145 et seq of Law 4261 or any delegated BoG acts. Arti - cle 145a of Law 4261 provides the hierarchy of claims in the special liquidation of credit institu - tions. Law 3458/2006, as amended, incorporates Directive 2001/24/EC in Greece and provides for the special liquidation procedure applicable to credit institutions. The shift towards a greener and more sustain - able economy has become a key priority at a global and EU level. Following the publication of the 2030 Agenda for Sustainable Develop - ment by the UN General Assembly (in 2015), setting out the core sustainable development goals (SDGs), the EU Commission took these SDGs into account in the next steps towards a sustainable EU future, and presented the European Green Deal in 2019, part of which is 9. ESG 9.1 ESG Requirements
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