Greece: Parliament passes bill on bank recapitalization

 
Four largest banks will receive about 14 billion euros in loans

Greece’s parliament on late Saturday evening approved legislation implementing the recapitalization of the country’s banks.

The banks will receive about 14 billion euros ($15.4 billion) in funds with the participation of the Hellenic Financial Stability Fund.

The European Central Bank’s Single Supervisory Mechanism announced that, according to the stress tests it had run for the capital needs of Greece’s largest banks (National Bank of Greece, Piraeus, Alpha Bank and Eurobank) Greek banks will need up to 14 billion euros ($15.4 billion) in fresh recapitalization if they are to be able to do business normally again.

The parliament approved the bill by a large majority.

The Hellenic Financial Stability Fund will have full voting rights in the banks’ management, as the fund will acquire shares in exchange for the loans it is providing.

ATHENS

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