Greek Bank Bondholders May Avoid Bail-In, Recap Fund Chief Says
- HFSF will try to lure private investors in recap process
- Greek parliament must approve legal framework by mid-October
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Holders of senior bonds in Greek banks will not be bailed-in if private investors cover the lenders’ basic capital shortfalls, according to the chief executive of the country’s financial stability fund.
The European Central Bank is currently reviewing the balance sheets of Greece’s four biggest banks -- National Bank of Greece SA, Eurobank Ergasias SA, Alpha Bank AE and Piraeus Bank SA. If shareholders can plug any potential holes that the inspectors identify in their baseline scenario, the senior bondholders won’t be asked to take any losses, Hellenic Financial Stability Fund CEO Aristides Xenofos told reporters in Athens on Wednesday.