The recapitalization needs of Greece’s systemic banks will be determined in the next few days after finalizing the results of a current stress tests, with the aim to cover any capital needs by the end of the year, banking sources told ANA-MPA. In this framework, the government is expected to table in Parliament a draft law defining the role of Hellenic Financial Stability Fund and set the principles of recapitalization procedures.
The draft law was currently drafted by the Finance ministry, the Bank of Greece, Hellenic Financial Stability Fund, the institutions and all interested banks. European Central Bank is expected to announce the recapitalization needs by the end of the month, while Greek banks’ managements will be informed a few days earlier after signing strict confidentiality clauses. Piraeus Bank on Thursday launched an optional public offer to its bondholders in the framework of recapitalization procedures, while other systemic banks are expected to follow suit.
The bank aim is to complete this procedure within set limits and to focus on their primary role which is funding the real economy, households and enterprises. At the same time, banks are designing new funding tools with the aim to support small- and medium-sized enterprises -the backbone of the Greek economy which has suffered heavily during the crisis. Banking officials said that completion of recapitalization would lay the grounds to lift capital controls in the country, while the big challenge ahead was to attract deposits, currently outside the domestic banking system.