Calamos Supports Greece
GreekReporter.comGreek NewsEconomyThe Needs of Suffering Greek Banks Analyzed in Future Stress Tests

The Needs of Suffering Greek Banks Analyzed in Future Stress Tests

The recapitalization needs of Greece’s systemic banks will be determined in the next few days after finalizing the results of current stress tests, with the aim to cover any capital needs by the end of the year, banking sources told ANA-MPA.
In this framework, the government is expected to table in Parliament a draft law defining the role of the Hellenic Financial Stability Fund and set the principles of recapitalization procedures. The draft law was currently drafted by the Finance Ministry, the Bank of Greece, the Hellenic Financial Stability Fund, other institutions and all interested banks.
European Central Bank is expected to announce the recapitalization needs by the end of the month, while Greek banks’ management will be informed a few days earlier after signing strict confidentiality clauses.
On Thursday, Piraeus Bank launched an optional public offer to its bondholders in the framework of recapitalization procedures, while other systemic banks are expected to follow suit. The bank aim is to complete this procedure within set limits and to focus on their primary role which is funding the real economy, households and enterprises.
At the same time, banks are designing new funding tools with the aim to support small and medium sized enterprises, which is the backbone of the Greek economy that has suffered heavily during the crisis. Banking officials said that completion of recapitalization would lay the grounds to lift capital controls in the country, while the big challenge ahead is to attract deposits, outside the domestic banking system.

See all the latest news from Greece and the world at Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!

Related Posts