The Hellenic Financial Stability Fund (HFSF) disbursed 18 billion euros of funds to the nation’s four biggest banks as part of 25 billion euros recapitalization plan agreed in Greece’s second bailout by the EU and the IMF for 130 billion euros.
The HFSF is a vehicle set up by the IMF and EU to manage the recapitalization received the 25 billion euros from the European Financial Stability Facility (EFSF) and now disbursed part of the recapitalization funds of 18 billion euros divided between National Bank, Alpha, Eurobank and Piraeus Bank.
According to reports from AFP National Bank, the biggest Greek lender, accounts for the biggest share of the funds at 7.43 billion euros. Piraeus bank will receive 4.7 billion, Eurobank will receive 3.97 billion euros and last Alpha will get 1.9 billion euros.
Fears over the stability of the banking sector has been under the spotlight over a possible run-on-deposits that might cripple the ailing sector, as speculations are ongoing of a Greek euro exit after the May 06 elections failed to produce a government and left the outlook uncertain until the second round in June.
The capital support to banks is hoped to ease the strain on the sector and reactivate their access to ECB funding that was suspended after the elections. Opinion polls are reflecting a rise in support to pro-bailout parties on the fear of losing the euro membership and that is sign of relief for tensed markets.
Asad Khan
Financial Analyst (CFB)
050-8774861
asad@cfb.ae
The HFSF is a vehicle set up by the IMF and EU to manage the recapitalization received the 25 billion euros from the European Financial Stability Facility (EFSF) and now disbursed part of the recapitalization funds of 18 billion euros divided between National Bank, Alpha, Eurobank and Piraeus Bank.
According to reports from AFP National Bank, the biggest Greek lender, accounts for the biggest share of the funds at 7.43 billion euros. Piraeus bank will receive 4.7 billion, Eurobank will receive 3.97 billion euros and last Alpha will get 1.9 billion euros.
Fears over the stability of the banking sector has been under the spotlight over a possible run-on-deposits that might cripple the ailing sector, as speculations are ongoing of a Greek euro exit after the May 06 elections failed to produce a government and left the outlook uncertain until the second round in June.
The capital support to banks is hoped to ease the strain on the sector and reactivate their access to ECB funding that was suspended after the elections. Opinion polls are reflecting a rise in support to pro-bailout parties on the fear of losing the euro membership and that is sign of relief for tensed markets.
Asad Khan
Financial Analyst (CFB)
050-8774861
asad@cfb.ae
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