ATHENS Jan 8 Greece's four largest lenders may
need more recapitalisation funds than the sum earmarked by the
central bank because of rising loan impairments, daily
Kathimerini newspaper reported on Tuesday.
In late December, the Bank of Greece said the four
systemically important banks - National, Eurobank
, Alpha and Piraeus - needed 27.5
billion euros in fresh capital to bolster weak solvency ratios.
Battered by the country's debt crisis and a protracted
recession, banks suffered heavy losses from a sovereign debt
swap in March last year while their loan portfolios continue to
be pounded by rising credit impairments.
Citing unnamed bankers, the paper said banks may ask for the
recapitalisation funds to be topped up to 30 billion euros to
deal with the rise in non-performing loans and foregone interest
income after taking part in a sovereign debt buyback.
The Bank of Greece declined to comment on the report.
Greece and its international lenders have earmarked 50
billion euros from the country's 130 billion euro bailout to
recapitalise the four systemically important banks and wind down
others deemed not viable.
In its report in December, the central bank said the 50
billion euro financial envelope earmarked to recapitalise and
resolve non-viable banks over the 2012-14 period was adequate.
(Reporting by George Georgiopoulos; Editing by Catherine Evans)