Friday September 19, 2014 Search
Weather | Athens
27o C
19o 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 country’s 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. Greece’s 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)  
Cyprus civil servants´ strike called off
Bank of Cyprus to sell UK loan portfolio
Elliniko investors eye Cyprus project warily
Auctions lead to surprise stock growth
Mayors resisting evaluation to face disciplinary action
Mayors and municipal employees who refuse to take part in a civil service evaluation scheme the government has undertaken as part of commitments to international creditors will face discipli...
Fyssas rally demonstrators face prosecutor after clashes
Sixty-four people arrested in Keratsini, a suburb of Piraeus, on Thursday, following clashes with police during an anti-racist march marking the one-year anniversary of the murder of rapper ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
EDITORIAL
Breathing room
Even Greece’s biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Mayors resisting evaluation to face disciplinary action
2. Fyssas rally demonstrators face prosecutor after clashes
3. PM in energy talks ahead of crucial meeting with Merkel
4. Attiki Odos Lamia exit to close Sunday
5. Young offenders get stipend for TEI admission
6. SYRIZA MPs want Lagarde to testify in connection with list probe
more news
Today
This Week
1. Dozens of arrests at march to mark anniversary of Fyssas murder
2. EIB signs deals with Greece for 815-mln investment in infrastructure projects
3. Syntagma metro station to close for Fyssas tribute concert
4. Samaras heads to Azerbaijan for two-day visit
5. ECB eyes banks’ capital quality as target for supervisory power
6. Hardouvelis signals Greece may skip IMF loans to exit aid curbs
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.