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New Collateral Package Activated For Greek Banks

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Greek banks proceed with initiatives to strengthen liquidity in an effort to set a protection shield, as the debt crisis weighs on the markets and causes uncertainty to consumers, investors and depositors in Greece and abroad. 

Last Friday, three Greek banks, Alpha, Eurobank and Piraeus Bank proceeded with the issue of bonds guaranteed by the Greek government. 
The total amount stands at €6.4 billion, according to international press reports. 

These titles will be used as collateral to secure financing, either through temporary liquidity facility (ELA) or through ECB, but it has not been clarified. Capital.gr has been told that Troika will decide on the issue within days. 

These funds are part of €30 billion guarantees to strengthen the banking system. The Greek state is required to play the role of guarantor of bank bond issues. 

Additionally, Greek banks are concerned about the political uncertainty and the turbulence caused by the financial hardship, and even the prospect of Eurozone splitting. The latter is no longer a taboo for EU officials. 

According to the same sources, the moves to enhance liquidity are designed to meet current needs, but also protect banks from any potential surge of liquidity needs.
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