Wednesday October 22, 2014 Search
Weather | Athens
24o C
14o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Banks to need more money for their recapitalization

By Yiannis Papadoyiannis

The country’s main banks are considering requesting additional funds for their recapitalization.

Senior bank officials say that the rapid deterioration in financial conditions caused by the back-to-back elections in mid-2012 has led to a greater increase in nonperforming loans than originally foreseen in the BlackRock report a year ago. They add that banks should proceed to greater share capital increases in order to respond to the new reality.

Ernst & Young estimates that nonperforming loans in Greece approached 24 percent of all loans at the end of 2012.

The bond buyback dealt another great blow to the credit sector that has made a revision of the capital requirements necessary. The Bank of Greece had estimated that operating profits for National, Alpha, Eurobank and Piraeus for the 2012-14 period would amount to 11.09 billion euros, which had been excluded from the calculation of the lenders’ capital needs. One of the main sources of those future revenues would have been the interest from the bonds amounting to 16 billion euros that banks had in their portfolios. However, the so-called voluntary sale of the bonds entailed a loss of those revenues for the banks.

According to estimates for the country’s four main banks, the buyback signifies a revenue reduction of at least 1.5 billion euros, thereby increasing their capital requirements. The Bank of Greece has announced that the four systemic banks will need in the region of 27.5 billion euros for their recapitalization, but if that estimate on the buyback is upheld, the bill will reach up to at least 29 billion euros.

The four lenders’ losses from the credit risk (including loans in Greece and abroad) are estimated at 14.58 billion euros, but if the deepening of the recession is factored in, the losses would grow by about 10 to 20 percent and the capital needs would expand by between 1.5 and 3 billion euros.

As a result the capital stock of 5 billion euros formed by the Bank of Greece for future needs may have to be used immediately by the big banks, eventually taking the total bill of the recapitalization process to over 30 billion euros.

ekathimerini.com , Monday Jan 7, 2013 (22:59)  
PPC gets approval for two wind parks in Rodopi
ECB cools speculation over bank health checks ahead of results
Greece´s NBG says Turkish unit to issue new shares
At least 11 banks to fail European stress tests, three in Greece, report says
Parliament votes to lift parliamentary immunity of GD MP
The Greek Parliament has voted to lift the parliamentary immunity of Golden Dawn MP Artemis Matthaiopoulos to face charges of robbery. During a vote Wednesday, 198 of the 203 deputies presen...
Ancient Greek well yields rare wooden statue
Archeologists in Greece have uncovered a rare wooden statue preserved in the muddy depths of an ancient well in Piraeus, the port of Athens. A Culture Ministry statement said Tuesday that th...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOK’s George Papandreou ma...
EDITORIAL
Taking care of our key industry
It’s time to face facts: Tourism is the country’s heavy industry. The sector’s considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Parliament votes to lift parliamentary immunity of GD MP
2. PPC gets approval for two wind parks in Rodopi
3. ECB cools speculation over bank health checks ahead of results
4. Ancient Greek well yields rare wooden statue
5. Turkey to continue seismic surveys, Davutoglu says
6. EU’s Juncker wins Commission-team approval with investment vow
more news
Today
This Week
1. Cyprus to block Turkey's EU talks after EEZ violation
2. At least 11 banks to fail European stress tests, three in Greece, report says
3. Juncker’s EU commission team set for parliamentary green light
4. Taprantzis resigns from privatization agency TAIPED
5. EU’s Juncker wins Commission-team approval with investment vow
6. Fallen tree, smashup cause traffic jams in Athens
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Coalition shooting itself in the foot
4. Greece must stick to reforms, says Schaeuble
5. GPO poll gives SYRIZA clear lead over New Democracy
6. Greece’s closed society is central to its current malaise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.