Crisis: Greece, banks facing specter of nationalization
However, the central bank is said to be unhappy by the business plans the lenders have presented so far.
Thursday, 12 April 2012
(ANSAmed) - ATHENS, APRIL 6 - Even the large Greek banks are facing the specter of nationalization in view of the enormous support for recapitalization they will need from the Financial Stability Facility (FSF), sources said on Thursday. On Friday, as Reporter.Gr writes, the Greek lenders will have to submit to the Bank of Greece their plans for boosting their capital adequacy following the huge write-downs they have had to take as a result of the Greek bond haircut. The country's international creditors are pressing for the terms of recapitalization to be defined urgently. The banks, whose combined market capitalization has dwindled to less than 3 billion euros, have already divested a large part of their real estate assets but results have been mediocre because of the slump. The banks are asking that shareholders be given incentive to repurchase as many shares as possible after three years, so that they will return to private Greek hands.
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