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Old Feb 13th, 2012, 04:38 AM   #7
Join Date: Mar 2002
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"Greek Banks May Need Extra 40 Billion Euros, Kathimerini Says"

Greek banks will need to raise around 40 billion euros ($53 billion) in additional capital to cover losses from a Greek debt swap plan, following a review of loan portfolios by Blackrock Solutions, Kathimerini said, citing Bank of Greece estimates.

Officials from Greece’s largest banks say the amount needed in extra capital won’t be more than 30 billion euros, the Athens-based newspaper reported today, without saying how it got that information.

Greek lenders must submit capital raising plans by the end of April and will have until the end of September to implement them; they will first have to be approved by both the Bank of Greece, the European Union, the European Central Bank and the International Monetary Fund, Kathimerini said.
Old Feb 20th, 2012, 04:21 AM   #8
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Posts: 3,311
Bank of Greece Will Issue Two Reports on Lenders, Imerisia Says

The Bank of Greece will release by the end of this month its report on how much additional capital Greek banks need to cover losses from a debt-swap plan, following a review of their loan portfolios by Blackrock Solutions, Imerisia reported.

The central bank will issue in March another report that will separate viable from non-viable banks, in cooperation with the International Monetary Fund, the European Commission and the European Central Bank, the Athens-based newspaper reported, without saying how it got the information.

Non-viable lenders may be split into “good” and “bad” banks, or the good assets of non-viable lenders may be sold to viable banks, Imerisia said.
Old Feb 27th, 2012, 02:04 AM   #9
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Posts: 3,311
"Greek Banks Will Need to Raise 10% of New Capital: Kathimerini"

Greece will ask the country’s banks to raise about 10 percent of their additional capital requirements, needed to cover losses from a Greek debt swap, from either old or new shareholders, Kathimerini reported


the Athens-based newspaper said today in its online version.

If the 10 percent level is reached, the remaining capital will be provided via the issuance of common shares to the state, the newspaper said.
Old Feb 27th, 2012, 02:07 AM   #10
Join Date: Mar 2002
Posts: 3,311
UPDATE 1-Greece sets bank recap via common shrs with restrictions

Sun Feb 26, 2012 2:55pm EST

Feb 26 (Reuters) - Greece plans to recapitalize its struggling banks after a bond swap largely through common shares with restricted voting rights and convertible bonds, according to a draft law submitted to parliament over the weekend.

The banks are expected to require recapitalisation because of impaired loans and losses from a bond swap that Greece launched on Friday to ease its debt burden .

About 50 billion euros ($67.31 billion) have been set aside to recapitalise through Greek banks after the bond exchange.

According to the draft law expected to be voted by parliament on Tuesday, the banks will be recapitalized through rights issues which will largely be covered by the Greek bailout fund, the Hellenic Financial Stability Fund.

"The voting rights of the new shares will be limited to strategic issues ... like mergers and asset sales," said the draft law.

Private investors were worried that banks would fall under state control if they were recapitalised via common voting shares, but the inclusion of restricted voting rights signals that the banks would remain privately-run.

Greek Finance Minister Evagelos Venizelos also confirmed last week that Athens did not plan to nationalize its banks.

The HFSF will give incentives to private investors to cover at least 10 percent of the rights issue, in which case they would be entitled to buy shares of the bailout fund at a ratio based in their participation in the capital increase.

Each bank that seeks funding from the HFSF will have to present a three-year restructuring plan to the fund and the Bank of Greece, the draft law said.

The law also said that the Greek government would appoint managers for the HFSF alongwith the EU. The European Commission and the European Central Bank will each have one non-voting representative on its board.

The bailout fund can maintain its stakes in the banks for up to five years, the law said.

The recapitalisation of the banks will take place after the bond swap concludes in mid-March.

Earlier, Greece set a March 8 deadline for investors to participate in the bond swap aimed at cutting its debt burden by about 100 billion euros, according to a document outlining the offer.

The debt-laden country formally launched the bond swap offer to private holders of its bonds on Friday, setting in motion the largest-ever sovereign debt restructuring in the hope of getting its finances back on track.

In the document, Greece said the March 8 deadline could be extended if needed. Athens in the past has said it wants to conclude the transaction by March 12.

The swap is part of a second, 130 billion euro ($175.02 billion) rescue package to claw Greece back from the brink of a default that had threatened to send shockwaves through the financial system and punish other weak euro zone members.
Old Feb 27th, 2012, 08:53 PM   #11
Join Date: Mar 2002
Posts: 3,311
A couple of articles regarding the amount of capital required by Greek banks generally (not NBG specific)
"Bond swap to wipe out Greek bank capital base-Moody's"
Old Mar 1st, 2012, 09:26 PM   #12
Join Date: Mar 2002
Posts: 3,311
Interesting article regarding timeline of upcoming events:

Friday 2 March

Thursday 8 March bond exchange closes

Friday 9 March conference call by Eurogroup Finance Ministers

Monday 12 March Eurogroup meeting to decide formally on Greece bailout

Tuesday 20 March
Probably the only genuine deadline that matters - Greece bond redemption

According to this article:

"Eurogroup gives provisional approval for new Greek package"

"the bond exchange must be completed first" before banks are recapitalised.
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