EU Temporarily Approves Aid For Greek Banks

EU Temporarily Approves Aid For Greek Banks


The European Commission on Friday said its has temporarily approved a bridge recapitalisation provided by the Hellenic Financial Stability Fund (HFSF) in favor of four Greek lenders, while opening an in-depth probe into whether the measure is in line with EU rules.
The banks included Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece.
Greek banks are currently operating under extreme conditions, Commission Vice President in charge of competition policy Joaqu?n Almunia said.
As the participation in the Greek Government bond exchange and the deep recession have weakened their capital, the bridge recapitalisation by the HFSF ensures the stability of the Greek banking system, Almunia said.
n April, the HFSF committed to participate in the planned share capital increases of Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece. In May, the HFSF granted the banks a bridge recapitalisation to cover the period until their final recapitalisation is implemented.
The Commission also said it has temporarily approved EUR 1.7 billion of public support to Nea Proton Bank, until it reaches a final decision on the bank's restructuring plan.




More FOREX-news on pages InstaForex.Com