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Top Greek banks will need 6.4 billion euros extra capital

Top Greek banks will need 6.4 billion euros extra capital
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Greece’s major banks will have to raise an additional 6.4 billion euros to make themselves strong enough to deal with any future crises.

The country’s four top lenders already boosted their capital reserves by 28 billion euros last summer.

After that the Greek central bank carried out checks to see if they, and other smaller banks Attica and Panellinia had enough cash.

The additional money it has now ordered be raised would be held in reserve to cope with bad loans, as well as any further economic slump and other potential banking shocks.

With the country in recession over 31 percent of loans made by Greek banks were not being repaid towards the end of last year.

The Bank of Greece said National Bank, the country’s largest bank by assets, had a capital need of 2.18 billion euros, with No.3 lender Eurobank’s shortfall at 2.95 billion euros.

The stress test showed peers Piraeus Bank and Alpha Bank had smaller capital deficits of 425 million euros and 262 million euros respectively.

The Bank of Greece said banks would have up to mid-April to show how they would cover their shortfalls.

It could be done by divesting assets, squeezing more cost savings from their business plans, selling additional shares or asking for help from Greece’s bank rescue fund (HFSF).

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