Greece On Recapitalization Path by Nov 15

Greece is likely to qualify for recapitalization funds for its banks by a Nov. 15 deadline because the payment depends mainly on financial sector reforms that it can implement by then, euro zone officials said on Friday.

The euro zone bailout fund has up to 25 billion euros ($28 billion) earmarked for the recapitalization of the Greek banking sector under Athens’ third bailout.

Of that total, 10 billion is already in an account in Luxembourg, ready to be wired to Greece.

If European Central Bank stress tests of Greek banks show that they need more capital, and money offered by private investors for Greek banks is not enough, cash from the remaining 15 billion could be used, provided Athens implements the financial sector part of the bailout reforms by Nov. 15.

Euro zone deputy finance ministers discussed the reforms and the timetable of disbursements at a teleconference on Friday.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza