tag:blogger.com,1999:blog-5882645467378797266.post2371782412793320422..comments2023-07-17T11:55:51.363+02:00Comments on ObservingGreece: Event Of The Year 2015 In Greece: The Bank Recapitalization!kleinguthttp://www.blogger.com/profile/12491174042954678023noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5882645467378797266.post-75729392447292278052016-01-07T18:03:20.939+01:002016-01-07T18:03:20.939+01:00The Syriza period is a weird one, a period of cont...The Syriza period is a weird one, a period of contradictions and intense contrasts. Say what you want about them, they are the first Greek government to actually do something about non-performing-loans and the faltering pension system.Jim Sliphttps://www.blogger.com/profile/15325962115410722474noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-86986570004993281752016-01-07T17:24:16.743+01:002016-01-07T17:24:16.743+01:00The Xafa summary is a bit sloppy in the numbers (e...The Xafa summary is a bit sloppy in the numbers (e.g. in the bailout package, €25bn was foreseen for bank recap, not €50bn as stated in the text).<br /><br />There's still a significant proportion of Tier 1 capital within Greek banks in the form of DTAs (Deferred Tax Assets) - essentially state-owned capital (or shouldn't it be called "virtual" capital, since it doesn't really exist). Moreover, it's just a matter of time before the new CoCo's (owned by the HFSF i.e. by the Greek state) will be converted into shares. In short, the banks have "almost" been nationalised, partly at the expense of the ESM, that financed the CoCo's. Note that the HFSF (Greek state) borrows the €5.3bn CoCo money from the ESM at 1% interest and lends it through to the banks at 8% interest.<br /><br />One may wonder why just €5bn was used of the €25bn foreseen. I think this third recap won't be the last one. Keep in mind that there's still €75bn or so of Emergency Liquidity Assistance - something that "healthy" banks don't need in permanence.<br />erikdesonvillehttps://www.blogger.com/profile/03768276748717698836noreply@blogger.com