Greek banks receive $22bn bailout

29 May 2012

Greece's four largest banks have been granted a multi-billion euro bailout from the government, it has emerged.

Eurobank, National Bank, Alpha and Piraeus Bank will benefit from an injection of €18 billion ($22 billion) as the country's sovereign attempts to make sure the financiers are in a position where they can access funding from the European Central Bank again.

This instalment of cash will be made through European Financial Stability Facility bonds and has been ratified by the Hellenic Financial Stability Fund (HFSF).

National Bank will receive the largest proportion of this money - €6.9 billion - with Piraeus Bank benefiting from an injection of €5 billion. Meanwhile, Eurobank is set to gain €4.2 billion and Alpha will be handed a sum of €1.9 billion.

In a statement issued after this decision was made, the HFSF noted this bailout will "restore the capital adequacy level of these banks".

"The banks have now sufficient financial resources in support of the real economy," it added.

By Tony Aynsley

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