The recapitalization of the four systemic banks in Greece – Alpha Bank, Eurobank, the National Bank and Piraeus Bank – has begun, however both private investors and the banks themselves have the negotiations between the Greek government and the international creditors in mind.

Although there is a stated interest of private investors to participate in the increase of equity funds, the extent of their involvement is likely to depend on the outcome of the negotiations. At the same time the banks are expecting the SSM to make its announcements on their capital plans within the day, which will in turn determine the extent of the equity increase.

As such, investors are waiting for the negotiations on the first package of prior actions to conclude. Successful conclusion of the negotiations will see 2 billion euros in aid paid out to the Greek government, along with 10 billion euros for the bank recapitalization.