The president of Hellenic Bank Association and National Bank governor Louka Katseli in an interview with Handelsblatt estimated that the capital needs of the Greek banks are limited.
“My personal view is that banks will not need the entire 25 billion euros”, Katseli said.
The third economic program provides for a total of 25 billion euros for the recapitalization of the four largest Greek banks. The exact amount needed will be determined after the ECB’s stress tests. In general the Greek banks are healthy, she noted. “We are not Iceland, Ireland or Cyprus,” she added.
“None of our banks are in danger of collapse,” Katseli stated, explaining that the difficulties faced by Greek institutions have systemic causes. “There are external shocks: the recession, the outflow of funds, the reduction of deposits, the non-performing loans,” she explained.
Katseli appeared optimistic that capital controls imposed on Greece will be lifted next year.
(source: ana-mpa)
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