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Greece's FinMin satisfied with bank results, optimistic on recap
October 31, 2015 / 1:37 PM / 2 years ago

Greece's FinMin satisfied with bank results, optimistic on recap

ATHENS (Reuters) - Greek Finance Minister Euclid Tsakalotos said on Saturday he was satisfied with the results of stress tests on the country’s four main banks and confident they would successfully recapitalize by the end of the year.

Greece’s banks need 14.4 billion euros ($15.85 billion) of fresh capital in an adverse scenario of economic performance, the European Central Bank said on Saturday, in health checks to start the rehabilitation of the country’s lenders.

In checks on the financial strength of the four main banks - National Bank of Greece, Piraeus, Alpha Bank and Eurobank - the ECB determined that even should the economy perform as forecast, under a so-called baseline scenario, the banks would need 4.4 billion euros ($4.8 billion).

“The numbers, particularly under the baseline scenario, are satisfactory,” Tsakalotos told Reuters.

“We have indications that the European Bank of Reconstruction and Development will participate (in the recapitalization of the banks). This is a good sign for private investors and Greek citizens because it marks a long-term commitment to the banking sector,” he said.

“We have every reason to be optimistic that the recapitalization process will be concluded by the end of the year.”

Reporting By Renee Maltezou

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