Wednesday October 22, 2014 Search
Weather | Athens
24o C
14o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
PSI costs domestic lenders dearly

 HFSF commits itself to participating in the recapitalization process

By Yiannis Papadoyiannis

The 2011 losses of Greece’s four major commercial lenders totaled a record 28.26 billion euros as a result of their participation in the private sector involvement (PSI) program aimed at reducing the country’s debt burden.

Bank officials told Kathimerini that the losses were inevitable due to the considerable exposure that National, Eurobank EFG, Alpha and Piraeus had to state bonds.

National Bank posted losses of 12.34 billion euros last year, with the PSI program accounting for 11.78 billion of that sum. For Eurobank, the corresponding figures were 5.5 billion and 4.6 billion, while for Alpha they were 3.83 billion and 3.81 billion, with the latter’s officials stressing its relatively strong capital base. Piraeus, on the other hand, registered losses of 6.6 billion euros, with 5.9 billion of that being PSI-related.

State lender ATEbank received a 40-day extension to its deadline for announcing financial results for 2011, as the government is still in negotiations with its creditors regarding how it and Hellenic Postbank will be recapitalized.

At least the road to the recapitalization of banks is open, as the Hellenic Financial Stability Facility (HFSF) committed itself yesterday to participating in the planned share capital increases of the country’s major banks with 18 billion euros, which the Bank of Greece has deemed viable.

HFSF sent a letter to the four banks on Friday informing them it will invest 6.9 billion euros in National Bank, 4.2 billion in Eurobank, 1.9 billion in Alpha and 5 billion in Piraeus. These funds should secure a capital adequacy index of more than 8 percent, which renders them viable and secures their uninterrupted funding from the Eurosystem.

However, the crucial issue of the incentives that will determine whether or not private investors participate in this tough process will be decided after next month’s elections.

”Only when the terms of recapitalization are finalized will we be able to assess the real needs that must be covered,” bank officials told Kathimerini.

ekathimerini.com , Friday April 20, 2012 (22:40)  
Greece´s NBG says Turkish unit to issue new shares
At least 11 banks to fail European stress tests, three in Greece, report says
Prudential holds on to shorter-maturity Greek bonds amid selloff
Taprantzis resigns from privatization agency TAIPED
Turkey to continue seismic surveys, Davutoglu says
As Nicosia threatened to block Turkey's EU membership talks over a violation of its exclusive economic zone (EEZ) by a Turkish survey vessel, Turkish Prime Minister Ahmet Davutoglu announced...
EU’s Juncker wins Commission-team approval with investment vow
Jean-Claude Juncker won parliamentary approval for his team of European Union commissioners, pledging to craft a 300 billion-euro ($381 billion) investment program to help kick-start a stagn...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOK’s George Papandreou ma...
EDITORIAL
Taking care of our key industry
It’s time to face facts: Tourism is the country’s heavy industry. The sector’s considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Turkey to continue seismic surveys, Davutoglu says
2. EU’s Juncker wins Commission-team approval with investment vow
3. Greece´s NBG says Turkish unit to issue new shares
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Fallen tree, smashup cause traffic jams in Athens
6. Prudential holds on to shorter-maturity Greek bonds amid selloff
more news
Today
This Week
1. Cyprus to block Turkey's EU talks after EEZ violation
2. Juncker’s EU commission team set for parliamentary green light
3. At least 11 banks to fail European stress tests, three in Greece, report says
4. Taprantzis resigns from privatization agency TAIPED
5. EU's Juncker pledges investment plan for jobs
6. EU’s Juncker wins Commission-team approval with investment vow
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Coalition shooting itself in the foot
4. GPO poll gives SYRIZA clear lead over New Democracy
5. Greece must stick to reforms, says Schaeuble
6. Greece’s closed society is central to its current malaise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.