HFSF to grind to a halt unless law changes

The HFSF bank bailout fund may be forced to roll down its shutters on Thursday due to the administrative crisis that has been dogging it since last summer.

According to existing legislation, if the position of Hellenic Financial Stability Fund chief executive officer remains vacant for three months, its Executive Committee most be dissolved and the fund cannot make any decisions, even for the minor issues such as the payment of staff or rent.

On Thursday it will be three months since the departure of the fund's CEO, and as his successor has not yet been appointed, the Executive Committee will have to cease operations. The government has been informed of the problem and sources say it has prepared a legislative intervention regarding the issue that will grant an extension to the three-month period. The intervention is set to be voted on in Parliament tomorrow.

The...