[An Nahar] Greece's four biggest banks need 27.5 billion euros ($36.4 billion) in recapitalization funds by the end of April, the national central bank said in a report released Thursday.
| $36 billion? Bank of America and Citigroup eat that for lunch... |
"Capital needs for all Greek commercial banks were estimated in May 2012 at 40.5 billion euros, of which the 27.5 billion euros corresponded to the four core banks," it said.
The four banks, identified as the National Bank of Greece (NBG), Alpha, Eurobank, and Piraeus, will receive support from the state because they are considered crucial to the national banking sector. A dozen smaller banks are to be recapitalized with private funds, also by the end of April, the national bank said.
"The Greek banking sector was severely hit over the past few years by the combined effects of the restructuring of Greek sovereign debt and adverse economic conditions, both of which affected banking assets and deposits," the central bank's report explained.
Its assessment of the bank's recapitalization needs over the 2012-2014 period was "conservative" it said. A key factor behind the needs was a restructuring of Greece's sovereign debt, it said, which hit Greek banks hard because they held large amounts of sovereign bonds.
The banks were also expected to suffer losses on both domestic and international loans.
According to the central bank, the main objective of its "comprehensive banking sector strategy is to secure a well-capitalized and viable banking sector."
In addition, Greek officials seek "to gradually restore depositors and market confidence." |