Home Greek news economy Greek Banks Need $36.3 Billion Injection

Greek Banks Need $36.3 Billion Injection

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National-Bank-of-Greece-007Greece’s four largest banks need to boost their capital by 27.5 billion euros ($36.3 billion) after taking huge losses from the government-imposed debt swap earlier this year, the largest sovereign restructuring in history.

The National Bank of Greece, the country’s biggest lender, needs to raise 9.8 billion euros, ($12.95 billion) according to an e-mailed report from the bank. Eurobank needs 5.8 billion euros, ($7.66 billion,) Alpha Bank needs 4.6 billion euros ($6.16 billion) and Piraeus Bank needs 7.3 billion euros, ($9.65 billion) according to the report. Total recapitalization needs for the country’s banking sector amount to 40.5 billion euros, ($53.55 billion) the report said.

The 50 billion euros earmarked for Greek banks in the country’s bailout program “is appropriate to cover the recapitalization and restructuring costs of the Greek banking sector,” the central bank said. “It is expected to remain adequate under reasonable levels of economic uncertainty.”

The recapitalization was needed because a former government under the PASOK Socialists whacked investors with 74 percent losses, including Cypriot banks who had huge holdings in Greek bonds and were nearly bankrupted, requiring the island government to seek an international bailout to keep the economy from collapsing.

The banks have received bridge recapitalization loans from the Hellenic Financial Stability Fund (HFSF) to raise their core tier one capital ratios to 9 percent, as required under the terms of the country’s bailout from the European Union and International Monetary Fund. The recapitalization must be completed by the end of April, through a combination of common equity and contingent convertible bonds.

(Source: Bloomberg)

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  • Alex

    Dirty banks. Who needs them when  Syriza could give millions of Greeks back their life savings by wholesale defaulting on any and all debts we have (which they will frame as “fighting corruption” and “sharing”)

    Then they would start printing billions in drachmas and handing them out to both Greeks and millions of 3rd world illegals (whom Syriza will give citizenship to so that in a few more years they can outnumber Greeks in our own country). Much like leftist “human rights activists” Mao, Pol Pot, Stalin   et al (who were responsible for the deaths of millions of their own countrymen)  Syriza promise we will reach their communist Utopia if we just give them power.

    Because of demographic changes we might have to make a “temporary” stop as a Shiria run Islam Republic of Western Turkey again though. And if course under such conditions the face value of our “Greek” currency wouldn’t be much more than the value of the paper it was printed on. So we would have serious shortages of fuel, food, and anything else we currently import. (since no foreign business would want to do business with communist deadbeats that disappeared into the woodwork when it comes time to paying their debts).

    That’s ok though. We can just break into the homes of wealthy citizens to feed ourselves in perpetuity. As we all know the mob thievery route of far left extremism worked so well for North Korea. Notice how far more advanced, richer, freer, and less corrupt communist North Korea is than backwards capitalist South Korea?

    Syriza will give us free money just like our prior governments of the last 20 years did. Didn’t socialist Papandreou claim there was more money to win an election?  Isn’t Syriza telling us the same thing now?

    So If you are poor and unemployed don’t worry about producing anything yourselves. The rich and powerful are entirely to blame for our poverty and problems. We carry no moral responsibility whatsoever for our actions in life. Lets just complain about how the government doesn’t give us enough money. Complain about the greedy rich. Lets be be proud anti-nationalist.

    Who needs to think about what we can give to our country and what we ourselves can produce. Someone else is always to blame. Just sit back and relax comrades. We deserve a break after all our hard work throwing rocks at police after yet another economy crippling strike demanding money from our government (i.e other greeks). Our leftists promise us our check is in the mail if we just vote for them. As every Greek knows no politician would ever lie to us with empty promises to get elected.

  • worldarts

    This whole EU and ECB banking scam is a farce and a fraud… Get out of the EU while you still can! 

  • worldarts

    Time for the Greek Justice System to start working again to clean out the rot of PASOK and ND after 37 years of high CRIMES against the State!