BUSINESS

Signs point to capital needs of 5 bln euros for systemic banks

By Yiannis Papadoyiannis

Consultations between the Bank of Greece (BoG) and officials from the country’s systemic banks started on Thursday on the conclusions of BlackRock’s stress tests on the local credit sector, with the bank officials saying that the early signs point to additional capital requirements adding up to 5 billion euros.

According to sources, the Bank of Greece has presented officials from National, Alpha, Piraeus and Eurobank with the preliminary results of the exercise on their loan portfolios, and talks will continue in the coming days so that all pending issues can be closed and the final bill be announced before the representatives of the country’s creditors leave next week.

So far only Eurobank’s needs have been made known, as the lender is preparing for a share capital increase of between 2 and 2.5 billion euros.

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