The problem of Greek subsidiaries in our country once again became the focus, after the fears that their parent banks will no longer have the ability to finance them intensified once again, as they are facing difficulties themselves.
The European Commission has recently approved the aid for the Greek banks, which have until the end of the month to implement their plans to increase their capital. The loan intended to recapitalize the Greek banks was granted by the Financial Stability Fund in Greece, as part of the banks' recapitalization plan.
Analyst Călin Rechea claims that those funds are insufficient, and that if the shareholders of the bank do not bring capital themselves, we can expect the nationalization of the banks.
Because the problems of the Greek banks are acute, it is out of the question for subsidiaries to expect support from their parent banks, the analyst says, who also warns that, if the connection between the two sides breaks, it will become impossible for the loans in the market, due to the lack of confidence which it will create.
Călin Rechea claims that the ratio between the loans granted and the deposits attracted by the domestic Greek banks, of about 250% (which means that loans significantly outweigh the resources attracted from foreign deposits) indicates a very high risk for the refinancing of the loan portfolios.
In fact the Greek branches have raised funding from the foreign financial markets to grant loans, and those loans, which have a 5-year maturity, are now getting closer to maturity, the analyst also says.
* Lucian Croitoru, NBR: The domestic branches of Greek banks have better liquidity ratios than other banks
The domestic branches of Greek banks have better liquidity ratios than those of other banks in the system, said Lucian Croitoru, the advisor to the governor of the NBR, Mugur
