Sunday October 26, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Portugal, Greece have money if banks need it, Regling says

By Rebecca Christie

Portugal and Greece have money set aside to recapitalize their banks if the European Central Bank uncovers problems during its asset-quality review and stress test, European Stability Mechanism chief Klaus Regling said.

Portugal has market access and a buffer to cover its financing needs for the next 12 months, Regling said in an interview in London. As a result, “there’s no need for them for any emergency financing,” he said.

Portugal also has 6.4 billion euros ($8.7 billion) set aside for banks, while Greece has 11 billion euros in a similar fund. This money is set aside until after the ECB reviews wrap up, so they are available if needed, Regling said.

For Portugal, “to the best of my knowledge it will not be needed or not much be needed,” Regling said. For Greece, “we don’t know how big these needs are,” he said. “Most people expect that much less than the 11 billion euros will be needed for the Greek banks, but we don’t know.”

The ECB is taking over bank supervision throughout the euro area this year in a bid to break the link between banks and sovereign debt. The ESM and its predecessor, the temporary European Financial Stability Facility, had to rescue five members of the currency bloc as the crisis swept across Europe.

When Greece and Portugal first received aid, they were able to work with the International Monetary Fund and European authorities to aid banks without required losses for private creditors. Junior bondholders and equity investors now must take losses before governments can add public capital, under European Union rules put in place last year and used when Spain sought ESM aid to restructure its banks.

Debt sale

Investors wondered whether Portugal might become a test case for the new rules after Banco Espirito Santo SA ran into trouble because of missed debt payments by linked companies. The bank’s woes, which came to light earlier this month, may have made it more expensive for Greece to tap financial markets on July 10 when it raised 1.5 billion euros in a debt sale that fell short of analysts’ expectations.

“There was some contagion from the Portuguese development to other European countries and to other European banks in many different countries,” Regling said. “From what I see today, this was a short-lived phenomenon that lasted for two or three days and seems to be gone by now.” [Bloomberg]

ekathimerini.com , Tuesday Jul 22, 2014 (13:40)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Samaras pledges action after flash floods in Athens
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Nicosia says reforms are bringing results
6. No court hearings for civil cases
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.