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Greek Banks’ financial boost temporarily approved pending investigation

By  |  July 29, 2012

Four major Greek banks received a combined €18 billion in bridge recapitalization from the Hellenic Financial Stability Fund (HFSF) to stabilize the Greek banking system in the face of deep recession and weakened capital. The EU Commission gave temporary approval as it has opened an investigation typical to large grants of state aid to ensure compliance with state aid rules. Unable to raise capital on the financial markets, Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece would have fallen below the 8% national regulatory capital requirements without state aid.

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