ECONOMY

Bank recapitalization report expected on Thursday

A Bank of Greece report due for release later on Thursday was expected to confirm that the country’s four systemic credit institutions will need nearly 28 billion euros in recapitalization funds, according to reports.

The report is also expected to describe the impact of last spring’s private sector involvement (PSI) deal as well of the debt buyback program earlier this month on the banks.

National Bank has said it will need 9.7 billion euros as Alpha Bank has put the figure at 4.6 billion euros. Meanwhile, Eurobank Ergasias has said it will require 5.8 billion euros while Piraeus Bank said its total recapitalization need is 7.3 billion euros plus 500 million for recently acquired ATEbank.

Overall, the bill for the four lenders’ recapitalization process is estimated 27.9 billion euros.

The Bank of Greece report is also expected to contain the findings of a Blackrock audit into the country’s lenders.

Bank recapitalization will come from the country’s bailout funds.

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