Friday March 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG dismisses capital need claims

 Banks requirements will not exceed 6 bln euros; methodology will be available for scrutiny, sources say

By Yiannis Papadoyiannis

The Bank of Greece is set to announce the capital requirements of local banks by the end of this week or next week at the latest, as they have been determined by the BlackRock stress tests conducted late last year. It will also present the methodology used in the exercise, according to BoG sources.

A report in the Financial Times on Monday claiming that the International Monetary Fund estimates the sectors needs as high as 20 billion euros sent shockwaves through Athens, but BoG sources insisted that the capital requirements will range between 5 and 6 billion euros. They added that these figures have been determined by the BlackRock tests and said that the method used has been checked by two more independent consultants, Rothschild and Ernst & Young.

The same sources stressed that the capital needs have not arisen from a unilateral calculation by the central bank; being the national regulatory authority, the Bank of Greece could not consent to capital needs that are not based on real data. They added that the publication of the report in detail and of the methodology applied will allow open scrutiny of the procedure.

They went on to blame the confusion on the IMF sources, noting that the Fund has been adequately informed in due time of the methodology used and the way the capital requirements were calculated and has not questioned the process.

Commercial bank officials attributed the report about the capital requirements of 20 billion euros to maneuvering ahead of the negotiations between the IMF, the BoG and the European Central Bank (ECB) on the issue, and underscored that the stated amount is out of touch with reality.

In fact, sources from the representatives of Greeces creditors have reservations about the methodology used by the Bank of Greece to determine the capital needs of banks based on the stress tests. They argue that the delay in the announcement of the results illustrates that they are being disputed.

Asked why doubts have emerged now and not before the tests started, an ECB source told Kathimerini that there a methodology had not been agreed upon when BlackRock started performing the stress tests.

ekathimerini.com , Monday February 24, 2014 (22:32)  
Bank deposits lost another 7.6 billion euros last month
Cash concerns keep Athens bourse action tight
Athens among top tourism destinations
High prices weigh on local organic market
ND, PASOK say coalition signed up to tough terms
Former Prime Minister Antonis Samaras on Thursday ratcheted up the rhetoric of the main opposition New Democracy party, which he still leads, in a scathing statement which accused the SYRIZA...
Greek defense minister heads to USA after controversy
Defense Minister Panos Kammenos heads to New York this weekend for Greek Independence Day celebrations after finding himself at the center of a controversy that led to the US Congress failin...
Inside News
BASKETBALL
All is well that ends well for Olympiakos
Young Ioannis Papapetrou helped Olympiakos stage an impressive last-quarter performance to beat visiting Efes Anadolu 86-75 on Thursday and bring its Euroleague losing streak to an end. The ...
BASKETBALL
Reds survive KAO Dramas scare in Piraeus
KAO Dramas gave depleted Olympiakos a scare at the Peace and Friendship Stadium on Monday, but the league leaders eventually managed to get their 20th win in 21 games. The Reds won by 10 (72...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
COMMENTARY
A competent crew is key
Greek politicians are mostly strangers to technocratic management and deft bargaining. The political system has regrettably unraveled the countrys public administration a process set in m...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. All is well that ends well for Olympiakos
2. ND, PASOK say coalition signed up to tough terms
3. Greek defense minister heads to USA after controversy
4. Police find Xeross bomb-testing spot
5. Judges send 32 to trial for kickbacks in submarine deal
6. Greek, Chinese FMs discuss deepening countries ties
more news
Today
This Week
1. Greece optimistic on deal with euro area next week
2. Opposition renews calls for minister to resign over legal cases
3. Greek foreign minister explores deepening of ties with China on Beijing visit
4. Stathakis against scrapping tax breaks for islands
5. Fed's Bullard: Grexit would be a Greek issue, not a euro issue
6. New Xeros safe house found near Athens, police say
Today
This Week
1. Next Monday is D-Day for state funds
2. Total victory is unattainable
3. EU asks Greece for more reforms to speed talks on bailout
4. PM faces Merkel amid race to detail reforms
5. New book by ex-US diplomat delves deeper into the recesses of Greek terrorism
6. Some more equal than others
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.