ECB: Greek banks need to recapitalize to 14.4 billion euros


ATHENS, 31 Oct. Gennady Melnik. The European Central Bank announced Saturday that the four systemic Greek banks need to 14.4 billion euros to recapitalize to survive, according to the website capital.gr.

The system banks are National bank of Greece, Piraeus bank, Alpha bank and Eurobank.

By the third aid programme of the 86 billion euros of loans 25 billion euros provided for the recapitalization of the banks. In the baseline scenario of the stress tests show capital deficit of 4.4 billion euros in the four systemic banks. On “adverse” scenario, the deficit is 14.4 billion euros.

Four banks in the period of 6 November to present the ECB’s plans covering capital requirements to which they must explain how they intend to make up the shortfall. Then will begin the process of recapitalization under the program of economic regulation, it needs to be completed before the end of the year.

The deficit through the capital increase will lead to the establishment of reserves in all four Greek banks, which will improve the stability of balances and the ability to cope with possible adverse macroeconomic shocks, the newspaper writes.

Saturday is expected to be adopted in the Greek Parliament of the law on recapitalization, which, in the opinion of the government, will avoid the mistakes of the past and improve the situation in the banks.

Greek banks have adequate capitalization with access to the Eurosystem, but to complete the process of recapitalization needs until the end of the year, in line with the new EU rules were not injured investors, including small tools which can be used for recapitalization. From 1 January 2016 guaranteed the safety of deposits up to 100 thousand euros.

The assessment made public after years of recession in Greece, to overcome which didn’t help, three loan agreements with international lenders on hundreds of billions of euros.

Aggravation of relations between Athens and international lenders this summer led to the suspension of funding of Greek banks and the introduction of controls on capital movement. This has increased pressure on the economy and impeded repayment of loans.