ECB stress test results will be 'manageable', Stability Fund CEO tells newspaper

The European Central Bank's stress tests of Greek banks will not be a cause of concern, Hellenic Financial Stability Fund (HFSF) CEO Anastasia Sakellariou said in an interview published on Sunday.

Speaking to Sunday Kathimerini, Sakellariou is quoted

as saying, "Even if some additional capital needs arise, I believe they will be manageable...Following the increases, Greek banks are protected in terms of capital and compare favourably with corresponding European banks."

Greek banks are in excellent shape at present, she said, and strong, while she commented, "What happened in Greece has never happened anywhere else in the world. We are not talking about recapitalisation of one or two isolated banks, but of the entire banking sector. Banks in Greece went from the private sector to a status of state funding and now we are in the phase of transitioning again to private hands."

Sakellariou also hinted that the Fund can recover much more than the 16 billion euros the International Monetary Fund, one of Greece's creditors, had foreseen in March 2012 from the bank support package of 50 billion euros. According to her, the Fund has reserves of 11.5 billion euros - a section of which can be used after the stress tests, if necessary - while the current value of the Fund's shares in systemic banks is about 18 billion euros. "This is a level that can be significantly raised if assessments for the country's positive path are confirmed," she explained.

Source: AMNA