Sunday December 21, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bad loans cast a heavy shadow on bank recapitalization plans

By Giorgos Mantelas

The results of the European Central Bank’s (ECB) ongoing stress tests on 128 banks across the eurozone, including four Greek lenders, look like they will not be made public for some time yet. The results are officially scheduled to be announced in October but the parties involved has hoped they may receive some indication in advance as to the level of recapitalization that will be required. Sources in Frankfurt, however, suggest that no information will be imparted before September at the earliest.

In October, the banks undergoing the stress tests – among which Greece’s National, Piraeus, Alpha and Eurobank – will receive analytical reports and will have to submit proposals within 15 days as to how they plan to cover any capital gaps. They will have to implement these measures within six to nine months.

There is a strong belief in Athens that the total figure for Greek banks “will be small and manageable.” This means a sum less than 4 billion euros, though judging from past stress tests – when the ECB refuted both over- and underestimates by suggesting the figure would be “somewhere in the middle” – it is likely the figure will be closer to the 5-billion-euro mark. This too is considered manageable.

The main worry for banks lies in the area of non-performing loans, the sum total of which is estimated possibly as high as 77 billion euros, with some 43 billion euros represented by corporate loans. For this reason, the restructuring of the country’s business sector looks all the more urgent. Bankers suggest that this has already started with the most problematic sectors, namely fish farming and coastal shipping, which are heavilly laden with loans.

According to one of the most likely solutions being examined, if the majority of lenders to an enterprise agree, its restructuring can go ahead – instead of requiring an overall consensus. And, most importantly, the process will not be subject to vetoing by the enterprise itself, as was the norm in the past.

ekathimerini.com , Saturday August 9, 2014 (15:09)  
Workers rush to get early retirement
Piraeus Containter Terminal goes from strength to strength
Moscovici: Creditor inspections to become less frequent and ‘lighter’
Property capital gains tax halt
Environment Ministry to reconsider controversial bill
The government over the weekend appeared to backpedal on proposed amendments widely seen as compromising legislation protecting Greek forests as well as Plaka, Athens’s old quarter. The bill...
Corfu to host country’s first hydroplane strip
Merchant Marine Minister Miltiades Varvitsiotis and Deputy Infrastructure and Transport Minister Michalis Papadopoulos have signed a decision paving the way for the country’s first hydroplan...
Inside News
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
SOCCER
Abidal cuts short playing career at Olympiakos
Former France and Barcelona defender Eric Abidal announced his retirement from football on Friday, a day before his last match. Abidal said he will finish after playing for Olympiakos agains...
Inside Sports
COMMENTARY
The big picture
In his second term, US President Barack Obama is taking steps to enshrine his legacy and solidify America’s standing in the 21st century. His recent decision to normalize relations between t...
EDITORIAL
Get your facts straight
The danger that political discourse in Greece will sink to the basest levels of vulgarity is already more than apparent from the allegations we have heard bandied about over recent days. The...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Environment Ministry to reconsider controversial bill
2. Corfu to host country’s first hydroplane strip
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Police gets new communications system
5. Most Greeks say they recycle daily
6. Probe into revenues of 2 mln euros in Halkidiki municipality
more news
Today
This Week
1. Get your facts straight
2. The big picture
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Environment Ministry to reconsider controversial bill
5. Changes on E9 property declarations possible until end-year
6. Police gets new communications system
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. A friendly yet firm message from Pierre Moscovici
3. Europe's drama in Greece needs final act to avoid tragedy
4. High stakes
5. On the edge but not gutless
6. Gap between SYRIZA and New Democracy closing, says poll
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.