Greek Government Presents Bank Recap Bill as ECB Test Looms
- Bill to be put to a vote in country's parliament on Saturday
- Eurobank, Alpha announce bond swap offers to boost capital
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Greece’s government submitted a bill setting the rules for the recapitalization of the nation’s battered banks on Friday, as lenders sought to address shortfalls from minimum regulatory capital requirements through bond swap offers.
Common shares, preferred shares, as well as other financing instruments, including unsecured senior liabilities, can be bailed in before a financial institution is eligible to use the public backstop of the state-owned recapitalization fund to cover its shortfall, according to the draft bill posted on the Greek parliament’s website.