The process should be
wary of diluting assets which are likely to revive with demand and growth...
If refinancing or
restructuring could make them working it should be the priority...
We should not forget
that the economy is yet to fully recover from the previous downturn and
disruptions which might turn the investment with growth in the economy...
The attempt to resolve
bad debt in a hurry for recovery in banks might negatively affect the medium
term demand and growth...
Restructuring of loans
for which could revive with growth and become viable should be given time...
Like fiscal austerity
during slowdown would further deffect growth, harsh austerity of banks would
destroke jobs and growth...
Bank cleaning might
sell assets which might still have some scope...
Banks should clean the
longer term bad loans first or older bad loans... They have also a
responsibility to save jobs too...
Recapitalisation was
urgent because it would increase banks'' capacity to deal with bad loans and
lending capacity...
Even to refinance and
finance at lower interest rate to already sick units that could recover...
Long run is uncertain
but still could have some probability to make the bad, the profitable...
Let the growth bring
back that would separate good from bad...
More resources during
high growth would help consolidation too...
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