The final process for recapitalization of banks, which will encourage growth and help kick-start the economy, will begin today. The Bank of Greece has already informed the managements of Ethniki, Alpha Bank and Trapeza Piraeos to expedite the procedures for recapitalization by the end of next week, in order to arrange general assemblies and decide upon capital increases.
The banks have also been asked to clarify whether they care able to cover the 10% private sector involvement by mid April. The banks will have to complete the capital increases by mid June, at least the ones that hope to collect the 10%. The banks which are unable to collect the 10% will be covered (and subsequently seized) by the Financial Stability Fund.
Bank managers appear optimistic about the procedures, with Ethniki’s managing director Alexandros Tourkolias claiming that international investors are attracted by the recapitalization moves. Alpha Bank managing director Dimitrios P. Mantzounis shared that enthusiasm and appeared certain that his bank would maintain its private character. The President of Trapeza Piraeos noted that absorbing the Greece-based Cypriot bank branches will help stabilize the Greek banking system and economy.