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Debt swap slams Greek banks' profits


Debt swap slams Greek banks' profits


Greece’s four biggest banks have posted huge losses for last year as they wrote down the value of Greek government bonds.

They were hit hard by last month’s bond swap to cut the country’s debts. That was part of the rescue package negotiated by Athens with the European Union and International Monetary Fund.

Alpha bank lost 3.8 billion euros, Eurobank 5.5 billion, National a whopping 12.3 billion and Piraeus 6.6 billion for a total of 28.25 billion euros.

Greece’s central bank has told the lenders they must rebuild their capital reserves by the end of September.

The government is still working on a framework to recapitalise the banks.

As well as the bond losses their bottom lines suffered from an increase in private and business loans not being paid back because of the country’s deep recession.

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