Gov’t and IMF in standoff over banks” capital needs

The meeting between the government’s economic staff and the troika of Greece’s international lenders was concluded at 2 a.m. after six hours of deliberations but without the two parties coming to an agreement on the capital needs of the country’s banks and the time scale lenders will have to find

«We want equal terms for Greek banks and other European lenders,» a senior Finance ministry official said. He pointed out it was mainly the International Monetary Fund (IMF) representative that disagreed on the time for the conclusion of the recapitalisation, as he considers that only a few months (less than six) are needed for the process to be completed.

According to the official, Greece has submitted a compromising proposal to the troika. That provides among others the announcement of the Bank of Greece’s stress tests on Thursday, the assessment of the banks” capital needs and giving banks the possibility to proceed with a share capital increase. The proposal also provides that in case banks do not raise the necessary funds, they can take refuge to the Financial Stability Fund. According to the proposal, Greek banks should be given the same time scale as the European banks in order to complete their recapitalisation.

source: ΑΜΝΑ