tommy271
Forumer storico
Greek Debt Rescheduling Won't Collapse Banks-Greek Banker
(Rewrites throughout with comment, detail.)
ATHENS (Dow Jones)--Greek banks could not only survive a mild rescheduling or extension of the nation's sovereign debt burden, but the move would restore confidence in the lenders, a senior Greek banking executive said Tuesday.
"Rescheduling or reprofiling of Greek government debt does not necessarily mean the demise of the Greek banking system," said Artemis Theodoridis, general manager for Greece's Alpha Bank SA (ALPHA.AT). On the contrary, he argued, it would lead to a more favorable financial environment for them.
"If the rescheduling is accompanied by a set of measures and guarantees that convince [investors] that the country is able to go back to the markets, then the extreme fear and uncertainty would go away," he said. "And then Greek banks would be able to recapitalize under less onerous terms than nowadays."
He spoke at a bank conference in Athens where earlier Tuesday a senior International Monetary Fund official warned that any reorganization of the country's giant debt burden could unleash dangerous and uncontrolled consequences for Europe.
Alpha Bank is one of Greece's four big lenders. All have been effectively frozen out of the European interbank market because of their exposure to Greek government bonds and now rely on special liquidity from the European Central Bank to survive.
Although generally regarded as well-capitalized, the banks are under pressure to boost their capital buffer to address fears that a sovereign default, or debt restructuring, would also drag down Greek lenders. Alpha Bank has signaled plans for a capital increase but has not disclosed the amount or timing.
In May 2010, Greece narrowly avoided default with the help of a EUR110 billion bailout from its fellow euro-zone members and the IMF in exchange for tough measures to fix its public finances and restructure the economy.
Since then, Greece has cut its budget deficit by about a third, to 10.5% of gross domestic product. But it still missed its target last year and has dragged its feet on an ambitious EUR50 billion privatization program. As a result, investors remain skeptical that the government can service its debt of around 150% of GDP.
Unable to borrow on the markets, Greece is now asking for a further EUR60 billion to cover its financing needs for the next two years.
In recent weeks, European officials--egged on by Germany, Europe's biggest economy and effective paymaster--have insisted on private creditors sharing the pain of any new loan deal. However, the European Central Bank is opposed to the proposal.
Credit ratings agencies Standard & Poor's Corp. and Fitch Ratings have said they consider any change in Greece's debt terms as tantamount to a default.
Bob Traa, the senior resident officer for the IMF in Greece, agreed.
"There is no such thing as being a little bit pregnant. Once you unleash a restructuring scenario, this is not very helpful," Traa said.
(Rewrites throughout with comment, detail.)
ATHENS (Dow Jones)--Greek banks could not only survive a mild rescheduling or extension of the nation's sovereign debt burden, but the move would restore confidence in the lenders, a senior Greek banking executive said Tuesday.
"Rescheduling or reprofiling of Greek government debt does not necessarily mean the demise of the Greek banking system," said Artemis Theodoridis, general manager for Greece's Alpha Bank SA (ALPHA.AT). On the contrary, he argued, it would lead to a more favorable financial environment for them.
"If the rescheduling is accompanied by a set of measures and guarantees that convince [investors] that the country is able to go back to the markets, then the extreme fear and uncertainty would go away," he said. "And then Greek banks would be able to recapitalize under less onerous terms than nowadays."
He spoke at a bank conference in Athens where earlier Tuesday a senior International Monetary Fund official warned that any reorganization of the country's giant debt burden could unleash dangerous and uncontrolled consequences for Europe.
Alpha Bank is one of Greece's four big lenders. All have been effectively frozen out of the European interbank market because of their exposure to Greek government bonds and now rely on special liquidity from the European Central Bank to survive.
Although generally regarded as well-capitalized, the banks are under pressure to boost their capital buffer to address fears that a sovereign default, or debt restructuring, would also drag down Greek lenders. Alpha Bank has signaled plans for a capital increase but has not disclosed the amount or timing.
In May 2010, Greece narrowly avoided default with the help of a EUR110 billion bailout from its fellow euro-zone members and the IMF in exchange for tough measures to fix its public finances and restructure the economy.
Since then, Greece has cut its budget deficit by about a third, to 10.5% of gross domestic product. But it still missed its target last year and has dragged its feet on an ambitious EUR50 billion privatization program. As a result, investors remain skeptical that the government can service its debt of around 150% of GDP.
Unable to borrow on the markets, Greece is now asking for a further EUR60 billion to cover its financing needs for the next two years.
In recent weeks, European officials--egged on by Germany, Europe's biggest economy and effective paymaster--have insisted on private creditors sharing the pain of any new loan deal. However, the European Central Bank is opposed to the proposal.
Credit ratings agencies Standard & Poor's Corp. and Fitch Ratings have said they consider any change in Greece's debt terms as tantamount to a default.
Bob Traa, the senior resident officer for the IMF in Greece, agreed.
"There is no such thing as being a little bit pregnant. Once you unleash a restructuring scenario, this is not very helpful," Traa said.
, che da qualche dipartimento di Economia di una qualche Università europea , avrebbe minacciato di ricorrere a Strasburgo o alla Corte Costituzionale del proprio paese (mi pare che se ne era pure parlato mesi fa di una vicenda analoga).
