Wednesday Jul 30, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
50 billion euro to rescue Greek banks unless recession worsens

The funds earmarked to recapitalize Greece's viable banks will be adequate as long as an economic downturn does not worsen more than current government projections, the head of the country's bank support fund said on Friday.

Huge losses from a sovereign debt swap in March and rising loan impairments nearly wiped out the capital of Greece's systemically important banks. Authorities plan to use 50 billion euros from the country's international bailout to shore up the sector.

"The 50 billion euros will suffice provided the recession is not bigger than the forecast 4.5 percent contraction in 2013, Panagiotis Thomopoulos, head of the Hellenic Financial Stability Fund (HFSF) told an Economist conference on risk management.

Recapitalizing Greece's limping banks is a vital part of the 130-billion-euro bailout given to it by the EU and International Monetary Fund bailout to right the economy and avert a sovereign bankruptcy.

The HFSF has already injected 18 billion euros into the country's four largest banks, National Bank, Alpha Bank, Eurobank and Piraeus Bank.

It is now awaiting Greece's next aid tranche, worth 31.5 billion euros, to replenish its cash arsenal.

Greece expects its economy to stay in recession for a sixth straight year in 2013 and the troika of the European Commission, IMF and European Central Bank are still examining its current efforts to start to put a cap on its debts.

"2013 will be a difficult year but the banking system will weather it. The troika knows that without a functioning banking system Greece will not be able to recover, Thomopoulos said.

Under the bank recapitalization framework Athens is finalizing, banks will have to meet a 9 percent Core Tier 1 capital adequacy ratio.

Lenders will have to issue shares to meet more than half of the 9 percent capital adequacy requirement and convertible bonds for the rest. Shareholders will have to take up at least 10 percent of the new shares for banks to be kept privately run.

[Reuters]

ekathimerini.com , Friday November 9, 2012 (15:00)  
Deals reached for twin plot on Afandou, for 42 million
More delays and red tape for companies tax rebates
Greek shipowners continue to invest in fleet renewal
Trainose sale is not on track
Troika review in Athens unaffected by Paris meeting
A meeting between troika and Greek government officials in Paris at the beginning of September does not mean that representatives of Greeces lenders will not then travel to Athens to carry ...
Soldiers set to sue over wages
Members of the armed forces and emergency services look set to take legal action to have their wages restored to pre-2012 levels after the government suggested it would not raise their pay t...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greeces next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Deals reached for twin plot on Afandou, for 42 million
2. More delays and red tape for companies tax rebates
3. Greek shipowners continue to invest in fleet renewal
4. Trainose sale is not on track
5. Industry asks for govt intervention
6. Troika review in Athens unaffected by Paris meeting
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. Worlds largest solar boat on Greek mission
4. Venizelos to meet Nimetz in Athens
5. More than 120,000 households to receive special benefit
6. Tsipras discusses Cyprus with Anastasiades in Athens
Today
This Week
1. Unequal after death
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
4. Quadriplegic woman on life support 'dies due to unpaid power bills'
5. Front-line threats
6. Defense Minister Avramopoulos to represent Greece at European Commission
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.