ECONOMY

Most banks to close their books on Tuesday

Most banks to close their books on Tuesday

Most of Greece’s systemic banks will likely close their books for their share capital increases on Tuesday, especially if the government reaches an agreement with the country’s creditors and the planned Euro Working Group meeting takes place in a positive climate. However, there is an outside chance of some banks extending the process by a couple more days to make the most of positive conditions after a successful end to talks. Sources said that Eurobank and Alpha managed to cover their increases on Monday night.

Bank managers expressed optimism that the necessary funds could be drawn from the market in spite of the deterioration in the climate following the terrorist attacks in Paris. Lenders will need to draw some 650 million euros less after the Single Supervisory Mechanism approved the capital strengthening plans.

The SSM approved actions that lead to reductions in the capital requirements of Piraeus Bank, by 271 million euros, Alpha, by 180 million, National, 120 million, and Eurobank, by 83 million euros.

Eurobank held an extraordinary general meeting on Monday in which chief executive officer Fokion Karavias stated that three-quarters of the increase had already been covered, aiming to close its book at 7 p.m. on Tuesday.

The bank announced that a group of investors committed to participating has upped its promised capital by 100 million to cover at least 453 million. The meeting also decided on a 100-to-one reverse split.

Alpha officials also expressed optimism, saying the bank’s book will close on Tuesday thanks to strong investor interest, while National Bank will likely close its book on Wednesday.

Piraeus Bank, which was the first to start the process of finding investors for its share capital increase, intends to close its book on Tuesday. Its officials say they are optimistic that the bank will find the funds it requires in the market. At Sunday’s general meeting the group’s president, Michalis Sallas, stressed that the rapid completion of the recapitalization will result in the protection of deposits and the restarting of the country’s economy.

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