Greece's Piraeus Bank Is Said to Face Capital-Raise Deadline
- Lender has to raise funds via Tier 2 debt sale this year
- Unfavorable market conditions make it harder to issue debt
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Greece’s second-biggest lender has been told by the European Central Bank to increase its capital this year, a task complicated by the country’s limited access to bond markets.
Piraeus Bank must raise about 500 million euros ($584 million) by selling tier 2 bonds under a plan agreed with the ECB’s Single Supervisory Mechanism, two people with knowledge of the matter said. They asked not to be identified because the matter is private. Spokesmen for Piraeus, the SSM and the Bank of Greece declined to comment.