Greek banks recapitalized with 18b euros

ATHENS - The four largest Greek banks' recapitalization with a total of 18 billion euros ($22.57 billion) funds was completed on Monday, the Greek Finance Ministry said.

The transfer of the funds from the Hellenic Financial Stability Fund (HFSF) to the National Bank of Greece, Alpha Bank, Piraeus Bank and Eurobank was made as part of efforts to support the local banking sector amid the alarming Greek debt crisis.

"This capital injection restores the capital adequacy level of these banks and ensures their access to the provision of liquidity funding from the European Central Bank and the Eurosystem. The banks have now sufficient financial resources in support of the real economy," said the press release.

The disbursement of the aid that derives from the European Financial Stability Facility (EFSF) support mechanism came in the context of the second bailout deal to assist debt-laden Greece with EU/International Monetary Fund (IMF) rescue loans to avoid a disorderly default that could rock euro and the international financial system.

Since the start of the debt crisis in late 2009 the Greek banking sector has been hit hard, along the real economy and the average Greek household by deep recession.

Shut down from international markets due to extremely high borrowing costs, the country, including its banks, rely on the multi-billion euro bailout packages agreed with EU/IMF creditors since May 2010.