Greece's Four Biggest banks to Recieve 27.5bn euros

Posted on December 27, 2012 by Jean


The Bank of Greece is the central bank of the country (file photo)

Thu Dec 27, 2012 8:56PM GMT



The Greek banking sector was severely hit over the past few years by
the combined effects of the restructuring of Greek sovereign debt and
adverse economic conditions, both of which affected banking assets and
deposits.”

Bank of Greece

Greece’s four biggest banks are to receive 27.5 billion euros in
recapitalization funds from Athens after the nation received a eurozone
bailout.




According to an official report, released by the Bank of Greece on
Thursday, the National Bank of Greece (NBG), Alpha, Eurobank, and
Piraeus will receive the funds as they are crucial to the national
banking sector.

“Capital needs for all Greek commercial banks were
estimated in May 2012 at 40.5 billion euros, of which the 27.5 billion
euros corresponded to the four core banks,” it said.

Greece’s main banks will “help improve the business environment and
put the real economy back into a sustainable path,” the report said.

“The Greek banking sector was severely hit over the past few years by
the combined effects of the restructuring of Greek sovereign debt and
adverse economic conditions, both of which affected banking assets and
deposits,” the central bank’s report explained.

The eurozone approved 49.1 billion euros of financial aid for Greece
in four packages, which started with 34.3 billion euros received a week
ago.
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