Saturday November 1, 2014 Search
Weather | Athens
18o C
13o 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)  
Disposable income of households fell 10.3 pct in one year
Banks unhappy with bad loans bill
State debtor numbers grew in September
Reform plan among conditions
Ministry swap halts talk of reshuffle as reforms eyed
Prime Minister Antonis Samaras on Friday appointed Nikos Dendias as defense minister, replacing outgoing Dimitris Avramopoulos, who assumes the European Commission’s immigration portfolio ne...
Turkish-Greek cooperation in Aegean helps stem flow of migrants
Closer cooperation between Greek and Turkish coast guard authorities has led to 11,000 undocumented migrants being prevented from entering Greek borders and returned to the neighboring count...
Inside News
BASKETBALL
Spanoulis played Zeus for Olympiakos against Neptunas
Captain Vassilis Spanoulis helped Olympiakos narrowly avoid an upset on Friday as it defeated Euroleague debutant Neptunas Klaipeda 85-81 in overtime in Lithuania to preserve its perfect sta...
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Spanoulis played Zeus for Olympiakos against Neptunas
2. Disposable income of households fell 10.3 pct in one year
3. Banks unhappy with bad loans bill
4. State debtor numbers grew in September
5. Reform plan among conditions
6. Ministry swap halts talk of reshuffle as reforms eyed
more news
Today
This Week
1. Archaeologists find underground vault at Amphipolis tomb
2. Man shot dead, woman injured in Vathis square attack
3. Greek retail sales rise for third month in a row
4. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
5. Germany’s 10-year bonds decline before euro-area inflation data
6. New defense minister to be appointed without reshuffle
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.