ECONOMY

Athens wants co-op banks in recap process

athens-wants-co-op-banks-in-recap-process

Greece wants small cooperative banks that lend to small firms to also be recapitalized alongside bigger banks, the country’s finance minister said on Friday as regulators begin preparations to assess the capital needs of Greece’s battered lenders.

“The government’s intention is to strengthen the cooperative banks,” Euclid Tsakalotos (photo) said in a statement.

“With this aim, the government’s proposals include the cooperative banks in the recapitalization of the banking system.”

Greece’s international creditors estimate the banking system may need 10 to 25 billion euros in fresh funds.

[Reuters]