Saturday, 10 November 2012

50 Billion Euro to Rescue Greek Banks unless Recession Worsens



The funds earmarked to recapitalize Greece's viable banks will be adequate as long as an economic downturn does not worsen more than current government projections, the head of the country's bank support fund said on Friday.

Huge losses from a sovereign debt swap in March and rising loan impairments nearly wiped out the capital of Greece's systemically important banks. Authorities plan to use 50 billion euros from the country's international bailout
to shore up the sector.

"The 50 billion euros will suffice provided the recession is not bigger than the forecast 4.5 percent contraction in 2013," Panagiotis Thomopoulos, head of the Hellenic Financial Stability Fund (HFSF) told an Economist conference on risk management.

Recapitalizing Greece's limping banks is a vital part of the 130-billion-euro bailout given to it by the EU and International Monetary Fund bailout to right the economy and avert a sovereign bankruptcy.
The HFSF has already injected 18 billion euros into the country's four largest banks, National Bank (NBGr.AT), Alpha Bank (ACBr.AT), Eurobank (EFGr.AT) and Piraeus Bank (BOPr.AT).

It is now awaiting Greece's next aid tranche, worth 31.5 billion euros, to replenish its cash arsenal.

Greece expects its economy to stay in recession for a sixth straight year in 2013 and the troika of the European Commission, IMF and European Central Bank are still examining its current efforts to start to put a cap on its debts.
"2013 will be a difficult year but the banking system will weather it. The troika knows that without a functioning banking system Greece will not be able to recover," Thomopoulos said.
Under the bank recapitalization framework Athens is finalizing, banks will have to meet a 9 percent Core Tier 1 capital adequacy ratio.
Lenders will have to issue shares to meet more than half of the 9 percent capital adequacy requirement and convertible bonds for the rest. Shareholders will have to take up at least 10 percent of the new shares for banks to be kept privately run. [ID:nL5E8LT6IQ] (Reporting by George Georgiopoulos; editing by Patrick Graham)



French Recession Looms as Industrial Production Slumps
Businessweek
That puts France on the verge of recession three years after it emerged from the last one as President Francois Hollande struggles to reduce the budget deficit and improve the nation's competitiveness. With companies such as PSA Peugeot Citroen SA ...
See all stories on this topic »
The Fiscal Cliff and America's Coming Recession
Forbes
Since the end of World War II two thirds of a century ago, federal spending has been stable at around 20% of GDP. America prospered to become the mightiest economic power in the history of the world with the federal government limited to that level of ...
See all stories on this topic »
Budget office: 'Fiscal cliff' cuts, tax hikes would lead to recession
Fox News
FoxNews.com. Austere "fiscal cliff" tax increases and federal spending cuts set for the end of the year would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall, congressional budget analysts said ...
See all stories on this topic »
Just whose recession is it anyway? | The Energy Report 11/9/12
Inside Futures
As we head towards the fiscal cliff and the markets from gold to bonds to stocks to oil start to price in a recession the question becomes, just whose recession is it anyway? Is this going to be a Democratic recession or a Republican recession? Today ...
See all stories on this topic »
How likely is another US recession?
Christian Science Monitor (blog)
First, let's remember that while the NBER makes the official call of both the “peak” of a business cycle expansion and the “trough” of the subsequent recession, their officiating is delayed to say the least. RELATED: For these four nations, 2012 is ...
See all stories on this topic »
Christian Science Monitor (blog)
Fitch Sees Risk of US Recession on Fiscal Cliff Concern
Bloomberg
The U.S. risks entering a recession that will hurt economic growth worldwide should policy makers fail to avoid the so-called fiscal cliff of automatic tax increases and spending cuts next year, Fitch Ratings said. “We think that will tip the U.S. back ...
See all stories on this topic »
Bloomberg
50 billion euro to rescue Greek banks unless recession worsens: official
Reuters
ATHENS (Reuters) - The funds earmarked to recapitalize Greece's viable banks will be adequate as long as an economic downturn does not worsen more than current government projections, the head of the country's bank support fund said on Friday.
See all stories on this topic »
Boehner calls on Obama to 'lead' on averting 'fiscal cliff'
Fox News
WASHINGTON – House Speaker John Boehner on Friday put the ball in President Obama's court over the so-called "fiscal cliff," calling on the president to step up with a solution to avert the double-whammy of spending cuts and tax hikes that threatens to ...
See all stories on this topic »
Country on the verge of a recession if Congress and the White House don't act
WFMJ
DAYTON, Ohio (AP) - Ohio food banks are distributing more food these days than during the recession a few years ago. The Ohio Association of Foodbanks says a difficult employment climate and increasedMore >>. DAYTON, Ohio (AP) - Ohio food banks are ...
See all stories on this topic »


French Recession Looms as Industrial Production Slumps
Businessweek
That puts France on the verge of recession three years after it emerged from the last one as President Francois Hollande struggles to reduce the budget deficit and improve the nation's competitiveness. With companies such as PSA Peugeot Citroen SA ...
See all stories on this topic »
The Fiscal Cliff and America's Coming Recession
Forbes
Since the end of World War II two thirds of a century ago, federal spending has been stable at around 20% of GDP. America prospered to become the mightiest economic power in the history of the world with the federal government limited to that level of ...
See all stories on this topic »
Budget office: 'Fiscal cliff' cuts, tax hikes would lead to recession
Fox News
FoxNews.com. Austere "fiscal cliff" tax increases and federal spending cuts set for the end of the year would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall, congressional budget analysts said ...
See all stories on this topic »
Just whose recession is it anyway? | The Energy Report 11/9/12
Inside Futures
As we head towards the fiscal cliff and the markets from gold to bonds to stocks to oil start to price in a recession the question becomes, just whose recession is it anyway? Is this going to be a Democratic recession or a Republican recession? Today ...
See all stories on this topic »
How likely is another US recession?
Christian Science Monitor (blog)
First, let's remember that while the NBER makes the official call of both the “peak” of a business cycle expansion and the “trough” of the subsequent recession, their officiating is delayed to say the least. RELATED: For these four nations, 2012 is ...
See all stories on this topic »

Christian Science Monitor (blog)
Fitch Sees Risk of US Recession on Fiscal Cliff Concern
Bloomberg
The U.S. risks entering a recession that will hurt economic growth worldwide should policy makers fail to avoid the so-called fiscal cliff of automatic tax increases and spending cuts next year, Fitch Ratings said. “We think that will tip the U.S. back ...
See all stories on this topic »

Bloomberg
50 billion euro to rescue Greek banks unless recession worsens: official
Reuters
ATHENS (Reuters) - The funds earmarked to recapitalize Greece's viable banks will be adequate as long as an economic downturn does not worsen more than current government projections, the head of the country's bank support fund said on Friday.
See all stories on this topic »
Boehner calls on Obama to 'lead' on averting 'fiscal cliff'
Fox News
WASHINGTON – House Speaker John Boehner on Friday put the ball in President Obama's court over the so-called "fiscal cliff," calling on the president to step up with a solution to avert the double-whammy of spending cuts and tax hikes that threatens to ...
See all stories on this topic »
Country on the verge of a recession if Congress and the White House don't act
WFMJ
DAYTON, Ohio (AP) - Ohio food banks are distributing more food these days than during therecession a few years ago. The Ohio Association of Foodbanks says a difficult employment climate and increasedMore >>. DAYTON, Ohio (AP) - Ohio food banks are ...
See all stories on this topic »

No comments:

Post a Comment