Recapitatlisation of Greek Banks Enters Final Stage

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The process of recapitalisation of the major systemic banks in Greece enters into its final stage on Monday, the successful completion of which is going to render the banking system capable of contributing to the great wager of restarting the growth of the economy, a report from the state news agency said.

The report said that already, the central Bank of Greece (BoG) has sent letters to the systemic banks asking the administrations of National Bank (NBG), Alpha Bank and Piraeus Bank to proceed at a rapid pace with the procedures for completion of their recapitisation, asking that by the end of next week at the latest they will have proceeded with the convening of their General Assemblies to approve share capital increases in the context of the recapitalisation.amna

According to the same report, the BoG has asked the banks to detail, by mid-April at the latest, their strategy on how they will cover the 10 percent private participation, in other words to indicate whether or not they will be in a position to put together the 10 percent in private participation, to finalise the terms of the increases and to submit the relevant Informational Letter to the Capital Market Commission by the end of April.

The banks have a time margin of up to mid-June to complete the share capital increases, at least those banks that have grounded hopes of putting together the 10 percent private participation. The banks that do not collect the 10 percent private participation, the total of the share capital increase will be covered by the Fiscal Stability Fund (FSF), and thus will pass into the full control of the FSF.