D. Nouy: Recapitalisation of Greek Banks should be completed by the end of 2015

D. Nouy: Recapitalisation of Greek Banks should be completed by the end of 2015

Athens, October 20, 2015/Independent Balkan News Agency

By Spiros Sideris

The recapitalization of Greek banks “should be completed by the end of the year”, and therefore it is “important” for the necessary resources EUR 10-25 bn to be available “in time”, said on Monday the head of the ECB’s supervisory mechanism, Danièle Nouy.

Speaking before the Finance Committee of the European Parliament, Nouy did not make any assessment of the capital needs of the four systemic Greek institutions, given that the stress tests are in progress and have not yet been completed.

She merely noted that the uncertainty that prevailed in the summer led to a “very intense” episode for the banking system.

Both the European partners and the Greek side wish the completion of the recapitalization before the end of the year, as from January 1, 2016 comes into force the new EU directive on the reorganisation troubled banks, which allows “haircut” on deposits of over 100,000 euro, something which would severely hurt the MSEs.

Referring to eurozone’s banking system overall, the head of the supervisory arm of the ECB noted that banks “are still facing great challenges”, especially due to their low profitability, but also because of the large volume of non-performing loans.