By N. Malliara
[email protected]
Greek systemic lenders have reportedly forecast additional capital needs of roughly 9.5 billion euros for the coming year after the stricter International Financial Reporting Standard 9 (IFRS) is implemented, and in the wake of ECB-mandated “stress tests” in the first trimester.
Nevertheless, in a bid to allay concerns that a fourth recapitalization will be needed in less than 10 years, Greek banks are expected to cover “openings” emanating from non-performing or troubled portfolios by current liquidity “cushions” and new capital plans.
The second phase of a Troubled Asset Review (TAR) begins this week with a review of portfolios held by Eurobank and Piraeus Bank. Earlier, the TAR process showed that Alpha Bank and National Bank of Greece will need additional capital of 80 and 100 million euros, respectively, to cover NPL-ridden portfolios.
Banking analysts in the Greek capital estimate that the total “tab” for all four Greek systemic lenders, thrice recapitalized since 2010, will reach 400 million euros in order to cover the specific TAR assessments.
