The capital requirements of the Greek banking system will be announced by the end of October, after the completion of the European Central Bank’s (ECB) stress tests, so that recapitalization can be completed by the end of the year, the CEO of the country’s bank recapitalization fund, Aristides Xenofos, told journalists at a press conference with HFSF Chairman George Michelis on Wednesday.
Xenofos also said the Hellenic Financial Stability Fund (HFSF), working with the finance ministry, the Bank of Greece, Greece’s creditors and the systemic banks, is mulling a series of measures that will attract private capital to limit state assistance and the extra burden that this places on Greek debt and Greek taxpayers.
He also said the government is expected to have drafted a new law governing the operation of the Fund that will reflect its expanded responsibilities and outline the framework for its staffing to ensure it will continue to offer efficient work.
The HFSF official noted that non-performing loans in Greek banks total about 100 billion euros and constitute a problem that needs to be resolved. HFSF, in cooperation with the Bank of Greece, will draft a report on existing difficulties towards developing a dynamic and flexible market of managing NPLs along with an action plan on the management of large corporate loans, he said.
Xenofos said that the fourth challenge that needs to be addressed was the new privatization fund and the political agreement to set up a “super-fund” to manage all mobile and other state assets.
(source: ana-mpa)
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