Sunday May 24, 2015 Search
Weather | Athens
14o C
09o 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)  
Greece does not have the money to make June IMF repayment, warns interior minister
Hotel contracts with a ‘Greek default clause’
Listed firms have whisked away most of their cash reserves
Car sales drop a gear on VAT rate uncertainty
Greeks back government´s red lines, but want to keep euro
Cash-strapped Greeks remain supportive of the leftist government's tough negotiating style, according to a new poll published Sunday, but hope for a deal with creditors that will keep the eu...
SYRIZA seeks new relationship with police
After a rather rocky start in its relationship with the country’s police force, the leftist-led coalition appears to be seeking closer cooperation but without being too obvious about it. A f...
Inside News
SOCCER
Reds add Cup to league trophy with 3-1 win over Xanthi
Olympiakos completed a league-and-cup double on Saturday by beating Xanthi 3-1 in the Greek Cup final at the Olympic Stadium of Athens, that was more balanced than the final score suggests. ...
BASKETBALL
Olympiakos strolls past Korivos Amaliadas
Olympiakos completed the Basket League’s semifinal line-up on Saturday after sweeping Korivos Amaliadas with a 2-0 score in the best-of-three quarterfinals. After winning 91-52 in Game 1 at ...
Inside Sports
COMMENTARY
The good news and the bad
The good news is that a Greek default will most likely be prevented, a deal will be reached with the country’s creditors and an extension will be granted for negotiations over the next bailo...
EDITORIAL
Geopolitical threats
Greece needs to extricate itself from this crisis fast and get back on its feet, not least because the geopolitical climate is becoming increasingly stormy. The Balkan region is re-entering ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greeks back government´s red lines, but want to keep euro
2. Greece does not have the money to make June IMF repayment, warns interior minister
3. SYRIZA seeks new relationship with police
4. Solving islands´ water problems would take 66.4 mln euros, study finds
5. Reds add Cup to league trophy with 3-1 win over Xanthi
6. Olympiakos strolls past Korivos Amaliadas
more news
Today
This Week
1. Greeks back government's red lines, but want to keep euro
2. Greece does not have the money to make June IMF repayment, warns interior minister
3. SYRIZA seeks new relationship with police
4. The good news and the bad
5. Solving islands' water problems would take 66.4 mln euros, study finds
6. Geopolitical threats
Today
This Week
1. The Greek-German breakthrough that didn’t come
2. Conspiracy madness
3. Greece came close to not paying IMF
4. National self-awareness put to the test
5. Albanian demarche raises concerns about possible territorial claims over Greece
6. Greek endgame nears for Tsipras as bank collateral hits buffers
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.