S&P’s EU out­look.

Kathimerini English - - Front Page -

mine cap­i­tal needs, the of­fi­cial said. Banks need larger cush­ions to help pave the way for elim­i­nat­ing cap­i­tal con­trols that were im­posed in June, said the of­fi­cial. Euro­pean lead­ers’ have pledged to shore up the Greek bank­ing sys­tem with 25 bil­lion eu­ros of cap­i­tal, an amount an­a­lysts say should be suf­fi­cient. De­pos­i­tors won’t be called on to help fund the re­cap­i­tal­iza­tions, which are due to be com­pleted by mid-De­cem­ber, nor will levies be im­posed on sav­ings, the of­fi­cial said. Ex­ist­ing bank share­hold­ers have ex­pressed in­ter­est in par­tic­i­pat­ing in the up­com­ing cap­i­tal in­creases, the of­fi­cial said, with­out elab­o­rat­ing. late 1990s. The Greek com­mer­cial bank in­dex – which ex­cludes Bank of Greece – fell close to 30 per­cent both on Mon­day and yesterday as in­vestors wor­ried about re­cap­i­tal­iza­tion stem­ming from a flight of eu­ros from de­posits. As a cen­tral bank, Bank of Greece has no re­cap­i­tal­iza­tion needs.

Stan­dard & Poor’s has changed the out­look for the Euro­pean Union from sta­ble to neg­a­tive af­ter the bloc’s sup­port for Greece and fol­low­ing Bri­tain’s de­ci­sion to vote on leav­ing the EU, S&P re­ported on Mon­day. The de­ci­sion means the US rat­ings agency could lower its grade of the EU – now at AA+ – in the next two years. “The EU’s re­peated use of its bal­ance sheet to pro­vide higher-risk fi­nanc­ing to EU mem­ber states (most re­cently in­clud­ing Greece), with­out the mem­ber states’ pay­ing in cap­i­tal,” was one rea­son be­hind the re­vised out­look, S&P said.

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