Friday November 28, 2014 Search
Weather | Athens
14o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG head says banks may need more funds

By Yiannis Papadoyiannis

Bank of Greece Governor Giorgos Provopoulos said on Thursday that certain banks may need some additional capital once the stress tests conducted by BlackRock Solutions are published, as he could not foresee the result of the exercise concerning lenders loan portfolios.

Responding to questions from Greek MPs, the central banker underlined that there is no cause for concern even if banks do need to further strengthen their capital bases, as the Hellenic Financial Stability Fund (HFSF) has a large capital reserve amounting to 8.7 billion euros that will cover any additional requirements. Eurobank has already announced it will go ahead with a 2-billion-euro share capital increase, but it is not yet known whether it will be partly or fully covered by the HFSF.

It remains unclear when the results of the stress tests on the countrys lenders will be published, as the government and its creditors have not yet agreed on the final terms necessary for the issuing of the results. Greeces creditors are in favor of stricter terms, while the banks are hoping for more lenient rules that will allow them to release some of their capital into the market.

The European Central Bank wants the funds that are not used for the recapitalization of the banks from the original 50 billion euros to be retained as a safety buffer for any future problems. The government, on the other hand, would like to utilize some of the unused funds to cover other needs, such as the bridging of the funding gap. Asked yesterday by New Democracy parliamentary spokesman Makis Voridis whether the HFSF surplus could be used to that end, Provopoulos declined to answer.

He reiterated his view that the Greek economy will start recovering this year, with the unemployment rate set to decrease, the drop in consumption to slow down, external demand growing partly thanks to tourism, corporate investment increasing and privatizations accelerating. He warned, however, against political instability that could be generated by the European and local elections in May.

Provopoulos also stressed that the central bank did all it was supposed to do on the issue of Hellenic Postbank, warning twice about its misconduct in the issue of loans and alerting the independent authority of money laundering, leading to the launch of the current judicial inquiry. However the central bank chief cautioned against what he called sweeping statements concerning the banking sector.

ekathimerini.com , Thursday Jan 16, 2014 (23:02)  
PPC profits power up in Jan-Sept
Papastratos banking on exports
Saudi group Olayan to enter Costa Navarino
Bank-financed property transactions rise a notch
Seven PASOK MPs voice support for party leader
Seven PASOK MPs on Thursday publicly backed Deputy Prime Minister Evangelos Venizelos and his plans for the party to play a leading role in a broader center-left alliance after ex-leader Geo...
New law could transfer control of unused buildings
Municipalities and private companies may soon get a chance to take over abandoned or empty buildings if a new bill drafted by the Environment Ministry is voted through Parliament. According ...
Inside News
SOCCER
PAOK is one win from Europa Leagues last 32
A late brace by Stefanos Athanasiadis gifted PAOK a precious win at Dynamo Minsk on Thursday, meaning that the Thessaloniki team is one win away from graduating from the group stage of the E...
BASKETBALL
First defeat for Olympiakos in Euroleague
Olympiakos suffered its first Euroleague loss of the season going down 89-70 at Laboral Kutxa on Thursday, although the Greek team remains the favorite to clinch the top spot in its pool. Th...
Inside Sports
COMMENTARY
The presidential election paradox
A few days ago, speaking with a visiting colleague who neither works in Europe nor covers events here, I suddenly felt how much we Greeks take for granted some things that should have worrie...
COMMENTARY
Scraping together the 180 MPs will not be enough
Even if the coalition government was to scrape together the 180-MP majority it needs to elect a new President in the 300-seat House, skeptics say, what will change really? There is one evide...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. PAOK is one win from Europa Leagues last 32
2. First defeat for Olympiakos in Euroleague
3. PPC profits power up in Jan-Sept
4. Papastratos banking on exports
5. Saudi group Olayan to enter Costa Navarino
6. Bank-financed property transactions rise a notch
more news
Today
This Week
1. Greece paralyzed by major strike, flights cancelled
2. Greek diplomat dies in fall under Thai train
3. Greece scrambles to find food, shelter for 700 migrants on crippled ship
4. Chief suspect in Piraeus bar shooting arrested
5. Scraping together the 180 MPs will not be enough
6. Troika talks to continue after failure to wrap up negotiations in Paris
Today
This Week
1. Give Greece a chance
2. Scientists expand excavation of ancient Amphipolis
3. Extremism from a bygone era
4. Greece paralyzed by major strike, flights cancelled
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Coscos Greek unit adds multinational rail-freight client
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.