Tag Archives: extends

Greek Attica Bank extends capital boost deadline to Dec. 18

ATHENS Dec 11 Greece’s central bank has extended by a week to Dec. 18 the deadline for participation in a capital boost by Attica Bank, the bank said.

The modest lender aims to raise up to 750 million euros to plug a capital shortfall. By Friday, the original deadline, it had raised 597.three million euros, Attica mentioned in a statement

“It is for the greatest interest of the bank and its shareholders to extend the closing date for participation in the bank’s share capital enhance to Dec. 18,” the statement added.

Bank of Greece carried out a extensive assessment of Attica, in line with the European Central Bank’s well being check of Greece’s 4 big banks, in October.

The assessment showed the lender had a 1.02 billion euro capital hole below the most adverse scenario and a shortfall of 857 million euros beneath the stress test’s baseline situation.

Attica, which has 79 branches, submitted a capital strategy to the Bank of Greece on how it plans to cover its capital requirements.

Soon after the capital improve is concluded, the bank will resort to Greece’s bank rescue fund HFSF for state help in the case of any remaining capital shortfall.

Greece effectively recapitalised its four greatest lenders this month and only Piraeus and National will have to tap into euro zone aid to assist cover capital needs.

The two banks will want five.7 billion euros ($ 6.1 billion) of euro zone money, a lot reduced than the 25 billion earmarked for the banking sector under an international bailout Greece had clinched with its lenders this summer time. (Reporting by Lefteris Karagiannopoulos Writing by Angeliki Koutantou Editing by Catherine Evans)

ECB extends its asset buying programme

FRANKFURT Dec 3 The European Central Bank adjusted its asset buy programme recognized as quantitative easing on Thursday, extending the scheme’s duration into 2017 and agreeing to buy euro-denominated municipal and regional bonds, ECB President Mario Draghi mentioned.

Purchases of primarily government bonds – at 60 billion euros a month – are now noticed operating till at least March 2017 as an alternative of subsequent September.

He also mentioned that proceeds from the a variety of assets purchased would be reinvested back into the scheme.

“We decided to extend the asset-buy programme. The month-to-month purchases of 60 billion euros beneath the asset-acquire programme are now intended to run until the end of March 2017 or beyond if needed and in any case until the Governing Council sees a sustained adjustment in the path of inflation constant with its aim of reaching inflation under but close to two percent over the medium term,” Draghi mentioned.

Analysts polled by Reuters last week had anticipated the ECB to increase the monthly purchases to 75 billion euros as well as extending the purchases.

The purchases have pushed down yields and boosted lending, indicating that quantitative easing (QE) was functioning, even if only slowly and with a lag, supporting calls for more asset buys.

But critics have said QE has accomplished tiny for inflation so far, the ECB’s biggest be concerned, with headline figures hovering close to zero and core inflation about 1 %, effectively quick of the central bank’s target of almost 2 % (Reporting by Balazs Koranyi Editing by Jeremy Gaunt.)