Greece needs €40.5 bn for bank recapitalisation
28 Dec 2012
Greece, the twice-bailed out Euro zone nation, would require €40.5 billion ($54 billion) to recapitalise it's struggling banking sector, the country's central bank said in a report yesterday.
Four of Greece's biggest lenders need €27.5 billion for their massive restructuring, under a programme endorsed by their global lenders, the Bank of Greece said.
According to the report, the country's largest bank, National Bank of Greece SA, would require €9.8 billion, Eurobank Ergrasias SA 5.8 billion, Alpha Bank 4.6 billion and Piraeus Bank SA €7.3 billion.
Including other banks the total recapitalisation requirement amounts to €40.5 billion.
Additionally, an amount of €4.5 billion may be required to finance the cost of winding down and restructuring of smaller lenders, the report said. The central bank also deems it appropriate to maintain a capital buffer of €5 billion taking into account potential developments that could increase or decrease funds needed.
"The Bank of Greece considers that, under reasonable levels of economic uncertainty, the amount of €50 billion earmarked in the economic adjustment programme is appropriate to cover the Greek banking sector's recapitalisation and restructuring costs," the report said.
