Sunday, 17 March 2013

Greek banks to absorb branches of three Cypriot banks

Greek banks to absorb branches of three Cypriot banks
Posted by in Economy
Greek banks will absorb the branches of Cypriot banks “Cyprus”, “Laiki” and “Elliniki”, Greek media reported on Saturday, hours after the Eurogroup decided on Cyprus bailout.
Citing government and banking sources, Greek and international media report that “Cypriot banks will transfer their Greek units to Greek owners.”
The units of Cypriot banks in Greece, which account for about a tenth of Greece’s banking market, were specifically excluded from the levy after a deal to transfer them to Greek lenders, one senior banking source and one senior finance ministry official told Reuters.
“They will be transferred to a Greek bank,” the finance ministry official said. It was not yet clear which Greek bank would take them over and on what terms.

Greek television channels (Alpha, Mega) reported that the Cypriot banks in Greece have 319 branches with 5,000 employees. And a total of 14 billion euro in deposits.
Deposits on Cypriot banks in Greece will be excluded from the 6.75%-9.9% levy for the Cyprus bailout.
The eurogroup said earlier on Saturday, without elaborating, that it welcomed “that an agreement could be reached on the Greek branches of the Cypriot banks, which protects the stability of both the Greek and the Cypriot banking systems”.
Wondering, if the reported resignation of Paul Koster, chairman of Greek Financial Stability Fund has anything to do with this deal.
According to Greek media reports, Cypriot lenders’ assets will be most likely transferred to Hellenic Postbank. While they earlier claimed that Greece’s National Bank rejected a participation, the name of this bank came up as potential Greek owner on Saturday evening.
The eurogroup ministers have reportedly agreed that the assets transfer will not burden the  Greek debt-to-GDP ratio”.
Banking sources estimate that the transfer of assets of Cypriot banks to Greek owner will be completed within the next 24 hours.
Greek banks will be recapitalized with 50 billion euro loans from EU, IMF and ECB.
…And the bailout Greeks will come up for the bailout of Cyprus and for saving the Cypriots banks in Greece as well.
PS As we are as generous as possible, I dare invite anyone in trouble to come here and be rescued by Greeks.

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