ECONOMY

Greece needs to recapitalize its banks by year end, says Dombrovskis

greece-needs-to-recapitalize-its-banks-by-year-end-says-dombrovskis

Greece needs to have its biggest lenders recapitalized by the end of the year, EU Commission Vice-President Valdis Dombrovskis said on Tuesday.

"We all agree to finalize bank recapitalization by end of this year," Dombrovskis said after meeting Greece's central bank governor Yannis Stournaras.

Dombrovskis is in Athens for talks on reforms Greece needs to complete before a review which would unlock new aid for the country under an 86-billion-euro bailout.

Under the deal, Greece is set to receive up to 25 billion euros of international money to recapitalize its banks, three of which are majority-owned by Greece's bank bailout fund HFSF.

The European Central Bank's Single Supervisory Mechanism is currently assessing the capital needs of National Bank of Greece, Piraeus, Alpha Bank and Eurobank.

The ECB is expected to release the results of the financial health check on the banks on October 31.

[Reuters]