Stress test re­sults will be bet­ter than ex­pected

Kathimerini English - - Front Page -

The re­sults of the Eu­ro­pean Cen­tral Bank’s health check on Greece’s four big banks, which will be re­leased on Satur­day, will be bet­ter than ex­pected, a Bank of Greece of­fi­cial said yes­ter­day. “[The cap­i­tal short­falls] will be be­low the lim­its of what was ex­pected,” the of­fi­cial said, de­clin­ing to be named. Eu­ro­pean Union Com­mis­sion Vice Pres­i­dent Valdis Dom­brovskis said yes­ter­day that Greece needs to have its big­gest lenders re­cap­i­tal­ized by the end of the year. “We all agree to fi­nal­ize bank re­cap­i­tal­iza­tion by end of this year,” Dom­brovskis said af­ter meet­ing Greece’s Cen­tral Bank Gov­er­nor Yan­nis Stournaras. Dom­brovskis was in Athens for talks on re­forms Greece needs to com­plete be­fore a re­view which would un­lock new aid for the coun­try un­der an 86-bil­lion-euro bailout. The ECB con­ducted an as­set qual­ity re­view and a stress test on Na­tional Bank, Pi­raeus Bank, Eurobank and Al­pha Bank un­der base­line and ad­verse sce­nar­ios on the fu­ture course of the econ­omy and pro­jected credit losses. Un­der the deal, Greece is set to re­ceive up to 25 bil­lion eu­ros of in­ter­na­tional money to re­cap­i­tal­ize its banks, three of which are ma­jor­ity-owned by Greece’s bank bailout fund HFSF.

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