Four Greek Banks Get Financial Injection of €18 Billion

Posted by in Economy

Four of Greec’s  biggest banks got a rejuvenate blood trnasfusion with a  financial injection of 18 billion euro by the European Financial Stability Fund. Of course, when the Titanic sinks, bankers are the ones to be saved first.

“Greece handed 18 billion euros ($22.6 billion) to its four biggest banks on Monday, an official said, allowing the stricken lenders to regain access to European Central Bank funding.

The long-awaited injection – via bonds from the European Financial Stability Facility rescue fund – will boost the nearly depleted capital base of National Bank, Alpha, Eurobank and Piraeus Bank.

“The funds have been disbursed,” an official at the Hellenic Financial Stability Facility, who declined to be named, told Reuters. The HFSF was set up to funnel funds from Greece’s bailout programme to recapitalise its tottering banks.

The HFSF allocated 6.9 billion euros to National Bank, 1.9 billion to Alpha, 4.2 billion to Eurobank and 5 billion to Piraeus. All four are scheduled to report first-quarter earnings this week.

The news came as two government officials told Reuters that near-bankrupt Greece could access 3 billion euros, left from its first bailout programme, to cover basic state payments if efforts to revive falling tax revenue fail.”(Further Reading REUTERS)

It is not clear whether even a slight part of this money will be forwarded to cash-short and recession-hit businesses and enterprises…. with low interest rates.  

Even if it is a ‘commitment to help’ establish a pro-bailout government after June 17 elections.