Wednesday June 3, 2015 Search
Weather | Athens
14o C
09o 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)  
Draghi’s Europe looks healthiest for years even with Greece
Spanish economy minister certain Greek deal to be reached
Dijsselbloem to join Greek talks in Brussels
French economy minister says confident Greek deal can be reached
Tsipras heads to Brussels to hear final offer from creditors
Greek Prime Minister Alexis Tsipras will be told the details of a final proposal from creditors to break a stalemate over a financial lifeline as his country runs out of options to avert a d...
Greece will not pay IMF without prospect of a deal, says SYRIZA MP
Greece will not make a June 5 loan repayment to the International Monetary Fund if there is no prospect of an aid-for-reforms deal with its international creditors soon, the spokesman for th...
Inside News
SOCCER
Panathinaikos snaps up Ghana midfielder Essien
Experienced Ghana midfielder Michael Essien joined Panathinaikos on a two-year contract as a free agent on Tuesday at the end of an 18-month deal with AC Milan. "I am very happy to be here a...
SOCCER
Unstoppable Panathinaikos makes Champions League
Panathinaikos will be Greece’s representative in the qualifiers of next season’s Champions League after beating PAOK with a 2-0 score on Sunday to clinch the top spot in the Super League pla...
Inside Sports
COMMENTARY
Shooting ourselves in the foot
I wonder if Prime Minister Alexis Tsipras and his close aides have ever seriously questioned their strategy vis-a-vis international leaders and officials. Tsipras may be enjoying sky-high po...
EDITORIAL
The spoils of power
This past Monday proved to be a crucial, if not landmark, day for the country’s future as the eurozone’s mighty powers met to discuss the Greek crisis. At the same time, a meeting was also t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Draghi’s Europe looks healthiest for years even with Greece
2. Spanish economy minister certain Greek deal to be reached
3. Dijsselbloem to join Greek talks in Brussels
4. French economy minister says confident Greek deal can be reached
5. Tsipras heads to Brussels to hear final offer from creditors
6. ECB to press case for steady QE, may urge Greece to accept deal
more news
Today
This Week
1. Greek Embassy in Berlin ‘headless’ due to politics
2. Schaeuble accuses SYRIZA of misleading voters
3. Tsipras to meet Juncker in Brussels for talks on agreement
4. Tsipras heads to Brussels to hear final offer from creditors
5. Greece will not pay IMF without prospect of a deal, says SYRIZA MP
6. ECB to press case for steady QE, may urge Greece to accept deal
Today
This Week
1. Endless confusion and worry
2. Some 300 mln left banks on Tuesday
3. Romantic notions meet reality
4. Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
5. Only Greece can end its miserable 'Groundhog Day'
6. G-7 weighs in on Greece as Tsipras government told to be serious
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.