Greece Sets Terms of Bank Recapitalization Plan, Shares Fall

Greece set the terms for the recapitalization of the country’s lenders with banks to issue common shares, convertible bonds and warrants to reach international capital requirements, the Finance Ministry said. Greek bank shares plunged.

Greek lenders will issue common shares to achieve a core Tier 1 capital ratio, a measure of financial strength, of 6 percent, the Athens-based ministry said today in an e-mailed statement. Existing preference shares issued under a 2008 law won’t be included in the calculation, the ministry said.