Grexit wounds

25 September 2012 By George Hay Follow @gfhay

Credit Agricole, SocGen and Millennium BCP are trying to offload Greek units to domestic lenders. But to do so, they are being forced to stump up capital to insulate the buyers from future losses. It forces them to be good citizens. But is also helps their loans to get repaid.

This content is for Subscribers only

Context News

Credit Agricole is set to pump another 700 million euros of capital into its Emporiki subsidiary, according to a person familiar with the situation.
The French bank, which already provided 2.3 billion euros of capital earlier this year, is one of a number of foreign banks required by Greek authorities to combine disposals of their Greek arms with sufficient capital to enable the subsidiaries to withstand losses from domestic loans over the next year.
Millennium BCP could have to pump in 500 million euros to its own Greek business, while Societe Generale is likely to provide 450 million euros to its own business Geniki, according to a senior Greek banker.
All three banks declined to comment.

Email a friend

Please complete the form below.

Required fields *