This is the month for the Greek Banks to fulfill the
increase in share capital as well as preferred rights stock options, and update
their annual reports as part of the recapitalization of banks due to the hair
cut in their bond portfolios.
As part of the 6 billion euros Greece will
receive from the Troika, Greek banks have to move towards increase in share
capital with the participation of private investors or merge with others, such
that the owners equity index is at 9%. In case they do not manage to find
private funds to participate in the share allocation then they will break up
into good and bad banks.
It is estimated that bad loans projections for the
Greek banks will exceed 40% and based on the results of the new stress tests
that will be completed this year, will determine their needs of capital
financing.
