Greek Banks Said to Face Recapitalization at Top of Range
- Auditors tell lenders they need to be more conservative
- Latest bailout package allocates 25 billion euros for banks
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Greek banks are being told by auditors some of their assets are overvalued, meaning they may have to raise close to the maximum 25 billion euros ($28 billion) allocated for their recapitalization this fall, people familiar with the matter said.
While a so-called Asset Quality Review on their books under the auspices of the European Central Bank is still in progress and no precise figures have been communicated yet, a drive by regulators to adopt more conservative assumptions about impairments and provisions for losses may lead to the capital holes, according to the three people, who asked not to be identified because the process is private.