Friday August 22, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Preliminary deal on bank needs

 BoG and troika agree to assess capital requirements of lenders according to the basic scenario of stress tests

By Yiannis Papadoyiannis

Bank of Greece Governor Giorgos Provopoulos and the representatives of the country’s creditors reached a deal on the main parameters for the assessment of the capital needs of banks on Wednesday during their first meeting, though some secondary technical details still need to be ironed out, according to sources.

The BoG and the troika – i.e. the chief inspectors from the European Central Bank, the European Commission and the International Monetary Fund – have agreed that the completion of the recapitalization should rely on the basic (and not the adverse) scenario of economic conditions, and that banks should retain a capital adequacy index of 8 percent, despite the different approach of the two sides over the mode of calculation.

The disagreement concerns the actual financial impact of potential losses from bad loans, which leads to a difference of 2 billion euros, as the BoG estimates the capital needs of the Greek credit sector around 6 billion, while the troika puts them at 8 billion.

The central bank presented on Wednesday its detailed positions on the stress tests conducted by BlackRock late last year and said that the report on their results would be issued on Tuesday, March 4. The troika asked for a few days for its technical teams to examine the methodology. BoG sources said the issue of capital needs cannot remain open – especially after suggestions about requirements of 20 billion euros – and stressed that the report will definitely be published by Friday, March 7.

Meanwhile Reuters cited on Wednesday a bank official saying that non-performing loans (NPLs) amounted to 31 percent of all loans in September 2013, compared with the rate of 29.3 percent recorded in end-June by the Bank of Greece.

Credit sector officials say that since March 2013 there has been a marked slowdown in the creation of bad loans, reflecting the general improvement in financial conditions. They estimate that in end-2013 NPLs amounted to 32 percent and expect them to peak during the first half of this year.

ekathimerini.com , Wednesday February 26, 2014 (22:45)  
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Primary surplus exceeds January-July target figure
Ryanair in Cyprus Airways talks
Aftershocks rattle Halkidiki after strong 5-Richter quake
A strong undersea quake, measuring 5 on the Richter scale, sgtruck off the coast of Cassandra in Halkidiki, northern Greece, shortly before 7.30 a.m. on Friday but there were no reports of a...
KEELPNO blames stomach bug for sick tourists on Rhodes
The Center for Disease Control and Prevention (KEELPNO) on Thursday contradicted foreign press reports according to which hundreds of tourists suffered food poisoning at a hotel on Rhodes ea...
Inside News
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
ATHLETICS
Long jumper Tsatoumas takes Greece´s second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
Inside Sports
COMMENTARY
Nationalism on steroids
Bodybuilders are in a league of their own. They rarely make headlines for their achievements, their performance, or being role models. In contrast, they’re more likely to make the news due t...
EDITORIAL
Time to kick a stupid habit
Official figures indicate that tax dodging continues unabated across Greece’s tourist areas. According to data made available by the Finance Ministry following checks conducted between July ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Aftershocks rattle Halkidiki after strong 5-Richter quake
2. KEELPNO blames stomach bug for sick tourists on Rhodes
3. Report: Greek banks sturdily positioned
4. Economy stunted by property tax demands, report says
5. Primary surplus exceeds January-July target figure
6. KEPs to issue new and replacement driving licenses
more news
Today
This Week
1. Aftershocks rattle Halkidiki after strong 5-Richter quake
2. Merkel cites euro’s ‘construction flaws’ as economy sputters
3. Brussels warns Greece over plans to allow construction near Korinos beach
4. Second man held over double murder in Mani
5. Avramopoulos in US for talks with Hagel on possible Greek role in peace missions
6. Eurozone business growth slows in July, prices fall: PMI
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys ‘no’ to debt collection agencies
6. Karatzaferis eyes ND-LAOS alliance to stop Tsipras
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.