HFSF hopes for a speedy re­cap process

Kathimerini English - - Focus -

The Hel­lenic Fi­nan­cial Sta­bil­ity Fund (HFSF) ex­pressed con­fi­dence yesterday that a bank bail-in will be avoided if, as is hoped, pri­vate in­vestors cover the cap­i­tal re­quire­ments to emerge from the as­set qual­ity re­views and stress tests.

Fund sources stress that any bailin process in the bank re­cap­i­tal­iza­tion would set a very neg­a­tive prece­dent for the eu­ro­zone, while mak­ing it much harder for Greek banks to re­turn to the in­ter­bank mar­ket.

In a meet­ing with re­porters yesterday, the head of the HFSF, Gior­gos Miche­lis, and its man­ag­ing di­rec­tor, Aris Xeno­fos, re­ferred to the four main chal­lenges that the fund has to face: the re­cap of the sys­temic banks, the strength­en­ing of the banks’ ad­min­is­tra­tion, non­per­form­ing loans and the role of the HFSF in the new pri­va­ti­za­tions fund.

They em­pha­sized that the re­cap timetable is par­tic­u­larly tight, as the law on the op­er­a­tion of the HFSF must be passed within Oc­to­ber, the stress tests re­sults must be an­nounced by the end of the month, and banks will need to find in­vestors to cover their fund­ing needs by De­cem­ber 15, as af­ter that the mar­kets will hi­ber­nate for the hol­i­days.

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