BUSINESS

Greek banks to be tested for two more recession years



Greek banks will have to prove they have enough capital to withstand another two years of recession under the «adverse» scenario of stress tests being carried out in Athens, Greece’s central bank governor George Provopoulos told Reuters, ekathimerini.com informs. The tests on the country’s four largest banks, all majority owned by Greece’s bank rescue fund the Hellenic Financial Stability Fund (HFSF), are being carried out to check if this summer’s 28 billion euro recapitalisation has left the banks capable of dealing with future shocks. Greek banks have seen their non-performing loans swell to 28 percent of their total loan books, as six years of consecutive recession wiped 25 percent off the country’s output, while Greece’s bailout programme demanded wage cuts and tax hikes. Greece expects to return to marginal growth in 2014. Provopoulos said the latest adverse scenario should not be interpreted as a forecast in this year’s tests, which are being carried out on National Bank of Greece, Piraeus, Alpha Bank and Eurobank.

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