The new recapitalization procedure for Greek banks will follow the model used successfully in 2012, with the separation and liquidation of unsustainable lenders and assets, thereby putting an end to households’ and enterprises’ fears of an across-the-board haircut on deposits.
Monday’s preliminary agreement for a third bailout provides for the investment of up to 25 billion euros in the second recapitalization of Greek banks in three years, while the government must immediately incorporate the European Union’s 2014 directive regarding the streamlining of banks in national legislation. The directive provides for 8 percent of the banks’ needs to be covered by the banks themselves: first by their shareholders, then by bondholders and if that is not enough, by those with deposits of over 100,000 euros. [...]
Deal banishes haircut worries | Business | ekathimerini.com
Monday’s preliminary agreement for a third bailout provides for the investment of up to 25 billion euros in the second recapitalization of Greek banks in three years, while the government must immediately incorporate the European Union’s 2014 directive regarding the streamlining of banks in national legislation. The directive provides for 8 percent of the banks’ needs to be covered by the banks themselves: first by their shareholders, then by bondholders and if that is not enough, by those with deposits of over 100,000 euros. [...]
Deal banishes haircut worries | Business | ekathimerini.com