ECB said to fa­vor 6 pct thresh­old for stress tests

Kathimerini English - - Front Page -

The Euro­pean Cen­tral Bank fa­vors re­quir­ing banks to show they can re­tain cap­i­tal worth 6 per­cent of their as­sets when it puts them through a sim­u­lated re­ces­sion later this year, said two euro-area of­fi­cials with knowl­edge of the mat­ter. A ma­jor­ity of pol­icy mak­ers and tech­ni­cal of­fi­cials have reached con­sen­sus on the bench­mark for the ECB’s stress test, the peo­ple said, ask­ing not to be iden­ti­fied as the de­lib­er­a­tions are not pub­lic. The thresh­old must still be agreed on with the Euro­pean Bank­ing Au­thor­ity that co­or­di­nates the ex­ams, and a small num­ber of coun­tries want­ing an eas­ier bench­mark may press for a com­pro­mise lower than 6 per­cent, one of the peo­ple

The gov­ern­ment is mak­ing plans for a re­duc­tion to the val­ueadded tax on coastal ship­ping ser­vices soon, Mer­chant Ma­rine Min­is­ter Mil­tiadis Varvit­si­o­tis told a board meet­ing of the Hel­lenic Cham­ber of Ho­tels yes­ter­day, in a bid to bol­ster tourism traf­fic to the coun­try’s is­land des­ti­na­tions. said. A bench­mark of 6 per­cent would be tougher than the 5 per­cent set by the Lon­don-based EBA in 2011, when tests failed to spot short­com­ings at banks that later col­lapsed. Pol­i­cy­mak­ers say they’re de­ter­mined to con­vince in­vestors that their health check of in­sti­tu­tions is thor­ough and cred­i­ble as the ECB pre­pares to take over su­per­vi­sion of about 130 euro-area lenders from France’s BNP Paribas SA to Bank of Val­letta Plc in Malta. An ECB spokes­woman de­clined to com­ment on the spe­cific num­ber, say­ing a fi­nal de­ci­sion has not yet been taken and any de­ci­sion needs to be co­or­di­nated with the EBA.

No White Week.

The Ed­u­ca­tion Min­istry has de­cided against in­tro­duc­ing a midterm break for schools in the first week of March, dubbed “White Week.” Greek hote­liers had re­quested the mea­sure in a bid to al­low fam­i­lies to em­bark on win­ter trips in the week start­ing with the Clean Mon­day hol­i­day (March 3-7). How­ever, a min­istry of­fi­cial told Kathimerini yes­ter­day that “the pro­posal for the im­me­di­ate ap­pli­ca­tion of the mea­sure has not yet ma­tured enough,” as sec­ondary ed­u­ca­tion teach­ers had ex­pressed op­po­si­tion to the plan and the min­istry is con­cerned about the al­ready short school year, which starts an­nu­ally on Septem­ber 11 and con­cludes on May 20 ahead of the end-of-year ex­ams. Par­ent as­so­ci­a­tions have sig­naled it is not time they are short of but money.

Ro­ma­nia bond.

Ro­ma­nia plans to is­sue another bond in the in­ter­na­tional cap­i­tal mar­kets be­fore the end of the first half of the year, a gov­ern­ment of­fi­cial stated. “We will is­sue a 10-year bond in euro some­time in the first half of the year. Our aim is to ex­tend our yield curve,” said Bud­get Min­is­ter Liviu Voinea.

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