ECONOMY

ECB expects bank recap to finish ?shortly?

The European Central Bank said on Wednesday it expects the recapitalization of Greek banks to be concluded soon, and welcomed generally the legal foundation for the fund that will carry out the task. ?The ECB expects that the bridge recapitalization will be finalized shortly,? the Frankfurt-based Central Bank said in a legal opinion published on its website.

At the same time, the ECB noted several reservations with the draft legislation for the Hellenic Financial Stability Facility, relating partly to a possible conflict of interest with the Greek central bank. A 130-billion-euro bailout earlier this year from international donors including the European Union and the International Monetary Fund provided 50 billion euros to recapitalize Greek banks after they reported losses from the country?s debt restructuring.

?The HFSF?s responsibilities need to be clearly defined, to ensure that the HFSF does not inadvertently interfere with the powers of the Bank of Greece as supervisory and resolution authority and as guarantor of the stability of the financial system,? the opinion said.

[Bloomberg]