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G.Provopoulos To Meet Top Greek Bankers

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The next steps of Greek banks amid the international market turmoil will be discussed in a meeting between Mr Giorgos Provopoulos, Greeces central banker and top Greek bankers.

Mr Provopoulos starts a round of meetings with Greek bankers today, to discuss the shielding of the Greek banking system against the markets “hurricane”.

The central banker estimates that Greek banks have not been hit by the crisis. Their exposure to composite products is limited and losses can be covered easily.

Last week, Mr Provopoulos was in Frankfurt to attend the ECB meeting where the latest developments were discussed. He also had a discussion with the vice president of ECBs Governing Council, Mr Loukas Papademos.

A top priority for Mr Provopoulos is to assess the exact extent of the losses caused to Greek banks and their customers by Lehman Brothers bonds. Sources said that these amount to 250-300 million euro and affect three or four Greek banks.

Moreover, the central banker is expected to ask banks to take measures to increase their capitals. Theses could include raising deposit rates, capital stock hikes, selling assets.

The central banker is worried over forecasts that the crisis is not over yet. The macroeconomic environment and negative sentiment affect consumption and investment. Moreover, the SE European markets, where Greek banks are active, present a widening current transactions deficit, which could cause a depreciation of their currencies, case in which the performance of loans in euro will face difficulties.

 

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