Gov’t green-lights bond transfer from HFSF to lenders
The Cabinet approved on Wednesday the legal framework for the
transfer of bonds from the Hellenic Financial Stability Facility (HFSF)
to commercial lenders in the context of the recapitalization process.
The
decision provides for the HFSF to sign subscription agreements with the
European Financial Stability Facility -- that will fund the process --
whereby bonds amounting to 18 billion euros will be transferred to the
four major commercial banks: National, Alpha, Eurobank EFG and Piraeus.
The
bonds will be deposited in a special account with the Bank of Greece
and will be distributed to each lender to boost their Tier 1 capital.
This is a temporary solution aimed at bolstering the capital base of the
lenders until the final structure of the recapitalization is
determined, after the elections.
The HFSF is committed to
participating in the share capital increase of the banks with the
following amounts: 6.9 billion euros in National Bank, 4.3 billion in
Eurobank, 1.9 billion in Alpha and 5 billion euros in Piraeus.
These
funds derive from the first installment of 25 billion euros set aside
for the recapitalization process, whose completion has now been put back
from the end of September to end-December. | 
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