Greek banks are trying to raise their capital adequacy as they fear that a bonds cut might take place, because of the selective default and the rollover which will follow.
High ranking bank executives are sure that Greek banks will participate in the bond’s cut in case there is debt restructuring, noting that an extension of the maturity date of the bonds is not enough and this act must constitute part of a much larger plan.
Greek debt holders are the Greek banks with 55 billion euro, the European Central Bank with 47 billion euro, German banks with 22 billion euro, French banks with 15 billion euro and Greek Social Security Organizations with 15-17 billion euro.
It is underlined that the National Bank, Piraeus Bank and the Agricultural Bank of Greece and Alpha Bank, have decided to raise their capital. However, apart from this plan to boost liquidity, Greek bankers are discussing mergers. There are two points of view. On one hand, it is supported that the banks should not remain inactive and move on with the mergers to ensure that decision-making will be taken by Greeks. On the other hand, it is thought that the mergers will be risky or at least insufficient before the banks are reformed.
Eurobank
The bank is discussing placing the majority of the shares of its subsidiary in Turkey to support current international activities of the Eurobank EFG in countries where it plays an important role.
Piraeus Bank
The bank announced that interest has been expressed for its subsidiary in Egypt by the Standard Chartered. The two parties are also discussing the possibility of cooperating in the trade finance and project finance sector.
Alpha Bank
The bank has decided to raise its capital. Specifically, its shareholders authorized the Board of Directors to draw 2.5 billion euro for the issue of new shares in the next 12 months, while they approved the issue of a convertible bond of 350 million euro in the next three years.
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