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Greek banks to receive $14.5bn recapitalization funding

Major banks in Greece are set to receive a significant financial boost today (23 May), it has emerged.

Following a meeting held yesterday, the Hellenic Financial Stability Fund (HFSF) has announced its board has unanimously approved a plan that will see the country's four biggest financiers benefit from an injection of capital worth €18 billion ($14.5 billion).

These funds will now be released and it is hoped they will give Greece's foremost banks some breathing space as uncertainty surrounding the nation's economic future continues to grow.

Under the terms of this contract, the lenders themselves - along with the HFSF and the European Financial Stability Fund - will be required to sign up to the agreement today.

This comes after the Financial Times reported yesterday that the Greek banking industry is being propped up by a secret €100 billion support fund from the European Central Bank's emergency liquidity assistance programme.

By Asim Shah