Greek banks won't need even more recapitalisation - ECB

Reuters

ATHENS (Reuters) - Greek banks will not need any further recapitalisation after the latest round, in which the European Central Bank put their additional capital needs at 14.4 billion euros (£10.1 billion), the ECB's Monetary Policy Strategy division head Rasmus Rueffer said.

The recapitalisation of Greek banks, to be completed in the coming days, was done through a mix of private and public money to make the banks resilient to an adverse scenario in which more of their loans would not be paid back if the economy slumps.

"We can trust that this (assessment) has been done very thoroughly and showed all the shortfalls that were there," Rueffer told a business conference.

"Suggestions that more will be are unfounded," he said.

The ECB carried out an asset quality review and stress tests of the four biggest Greek banks in October after they were weakened by political instability that led to deposit flight and the imposition of capital controls in July which remain in force.

(Reporting By Lefteris Papadimas and Jan Strupczewski; editing by Paul Taylor)