BoG on recapitalization: Greek banks will need capital up to 6.4 bln euros

March 6, 2014 Economy 1 Comment 78 Views

Greek banks will need additional capital of 6.382 billion euro, Bank of Greece said on Thursday. specifically, Eurobank will need €2.845 billion, National Bank of Greece €2.183 billion, Piraeus Bank €425 million, Alpha Bank €262 million, Attica Bank €397 million and €Panellinia Bank 169 million.

“The additional capital requirements of Greek systemic lenders add up to 6.382 billion euros according to the results of the stress tests that BlackRock Solutions performed on the loan portfolios of National, Alpha, Piraeus, Eurobank, Attica and Panellinia late last year, the Bank of Greece announced on Thursday.

Using the basic scenario of the exercise, the central bank has calculated that in normal conditions of economic uncertainty, the capital needs of banks up to December 2016 will be covered by the reserves already factored in the test, by the activities to reduce capital requirements (such as the participation of the private sector in share capital increases, the sale of assets etc), and the unused funds of the Hellenic Financial Stability Fund.

The Bank of Greece has also asked lenders to submit up to April 15 their plans to strengthen their capital base according to the results of the test’s basic scenario.” (via ekathimerini) More details in Greek here

On Wednesday, Reuters reported of the recapitalization disagreement between the Bank of Greece and the country’s lenders the Troika.

“The Bank of Greece sees the top banks needing 5.8 billion to 6.2 billion euros ($8 billion to $8.5 billion) in extra capital after the stress test but the troika of international lenders has put the need at 8-8.5 billion euros, a source close to the talks has told Reuters.”

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Ephilant
March 9, 2014 at 8:50 pm

Just that you know, this is what is being “recapitalized”

A deputy prosecutor at the Supreme Court, Panayiotis Nikoloudis described in detail during his hours-long presentation how, in the runup to the collapse of the Greek economy, five banks pillaged their deposits and funneled money to members of their boards, major shareholders, cronies and big business players through dodgy loans and transfers to tax havens and offshore bank accounts. He showed evidence pointing to interbank activity, legal cover-ups, expertise in such schemes, and, of course, a steady cycle of interconnected interests that were protected by friendly media outlets and complicit politicians. Nikoloudis presented his own view of how the hierarchy of massive-scale corruption works: Of the 207 cases being investigated by his department, corrupt politicians do not appear to play a leading role, which is reserved for a very specific section of the economic elite with powerful media connections. The job of the politicians is to provide cover when it’s needed.

Proton Bank, First Business Bank, Hellenic Postbank, Halkida Bank and Bank of the Peloponnese: The list will likely grow even longer, revealing more suspects, people with money, social standing and influence, people who so far at least are believed to have made off with over 1 billion euros.

Meanwhile, the EU has been stalling this, and is now putting a “recapitalization” decision off until the end of June, meaning, AFTER the EU elections. This is certain to mean that this “recapitalization” is going to result in MoU v3, which will inevitably lead to… indeed, more austerity. I wonder why they feel the need to wait till AFTER the EU elections to push this through…
And while Greek Joe Soap pays though the nose, those who initiated this gigantic ponzi scheme ride of into the sunset, with the loot safely tucked away in an untouchable bank account or offshore company…

BoG on recapitalization: Greek banks will need capital up to 6.4 bln euros

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