Banks plan to go back to markets

The country’s four systemic banks are contemplating the idea of heading straight to the financial markets if the deferred tax assets issue is not dealt with in time, as is appearing increasingly likely.

Kathimerini understands that the lenders are considering announcing share capital increases as soon as the results of their stress tests are announced by the European Central Bank, which Frankfurt confirmed on Friday will take place on October 26.

Given that the banks will likely have to proceed without the safety cushion of 500 million euros apiece from the deferred tax credits, they will try to draw money from the market to cover any capital requirements the stress tests might reveal.

However, as a result of the currently prevailing political uncertainty, market conditions have deteriorated for Greece in last few weeks, while another share capital increase may harm the banks’ credibility as it will affect the stakes of investors who took part in the recent increases.

This can be offset by the growth prospects of the privately held stake in the banks’ share capital.

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