Greek Banks In Hot 2-Month Period, Haircut Undetermined
Greece enters a hot two-month period, as EU decisions require changes at three levels: new aid package of €100 (+30) billion, recapitalization of banks and haircut of Greek debt by 50%.
All three decisions are still on paper, as the most critical of them (haircut) is not determined whether it would be voluntary or not.
German FinMin W. Schaeuble said on Sunday that if the required amount of €205 billion is not reached, then the participation may not be voluntary, amending the type of agreement.
But this would begin to clear up no earlier than late November or early January, while German courts would resolve on how the government would implement decision of the EU Summit.
As Capital.gr revealed on Friday, there is an agonizing effort going on to reduce the participation of Greek Financial Stability Fund in recapitalization of Greek banks. Funding from the Greek FSF would be done with common shares, while funding from the European Financial Stability Facility would be done with preferred shares. But the news did not appear encouraging.
Brussels sources indicate that the funding of Greek banks would be included in the new stimulus package, which would be implemented through the Greek FSF. The Fund would be given €30 billion to support Greek banks, but shares would be common, not preferred .
(capital.gr)