Greece’s four biggest banks would be able to cover their funding shortfalls without imposing losses on senior bondholders even under the worst-case scenario by the country’s central bank, ratings agency Fitch said on Tuesday.
The Bank of Greece ran a health check to see whether last year’s 28-billion-euro recapitalization of the four lenders left them with enough capital to withstand rising bad loans, a further economic slump and other potential shocks.
Last week’s stress tests found National, Piraeus, Eurobank and Alpha must raise an extra 6.4 billion euros in capital to make themselves strong enough.
“The four systemically important Greek banks’ capital needs appear manageable, even under the Bank of Greece’s adverse scenario,” Fitch said.
“Greek banks should therefore be able to address capital shortfalls from the Bank of Greece’s stress test without bail in of senior debt.”