Greece delays recapitalization - what a shocker !

2.10pm: More from Helena Smith, who has been looking at the story here that Greek banks will announce their losses for last year later today.

Helena says that the Greek prime minister Lucas Papademos has today reiterated that supporting businesses after five years of recession is a top priority for Greece.

"The government is trying to do everything possible to make sure that financial resources reach the real economy," Papademos, a former Goldman Sachs banker and vice president of the European Central Bank, told a conference in Athens.

It was essential, he said, that the country's banks "play an active role" in revitalising the cash-starved Greek economy.

Papademos, an unelected technocrat in power since November last, insisted that the recapitalisation of the country's banks (though now expected to be delayed) was a "prerequisite" to re-energising the real economy through businesses that are among the greatest victims of the debt crisis. The European Financial Stability Fund, he said, had sent 25 billion euros towards the recapitalization process although he forecast that about double that amount would eventually be needed.

and...

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_32149_19/04/2012_438480

HFSF to promise funds for lenders  No decision yet on recapitalization terms, the aim is to retain the banks’ private character  Prime Minister Lucas papademos (left) discussed the recapitalization of banks with Bank of Greece Governor Giorgos Provopoulos on Thursday. By Yiannis Papadoyiannis The difficulties emerging in reaching an agreement on the terms of the recapitalization of Greek banks is likely to postpone the announcement of the details of its application, set for today, although the commercial lenders will receive a formal assurance they are to receive 23 billion euros to boost their capital. With the country’s main banks set to present record losses upon announcing their 2011 financial results on Friday, Kathimerini understands that the Hellenic Financial Stability Fund (HFSF) will send a letter to the management of National, Eurobank EFG, Alpha and Piraeus this morning that will state its commitment to paying the money needed for the recapitalization if the lenders stick to the capital enhancement plans they have submitted to the Bank of Greece. The country’s central bank has already approved those plans as realistic, and the HFSF letter will allow the accountants to sign certificates that the lenders are risk-free. That is particularly important as the delay in the finalization of the terms of the planned recapitalization had rekindled worries about a possible crumbling of the local credit system. On Thursday Prime Minister Lucas Papademos met with Central Bank Governor Giorgos Provopoulos, but their meeting proved inconclusive regarding the details of the process. The sticking point is how the private character of the lenders can be retained. The structure of the intervention and the incentives for the participation of the private sector will likely be decided by the government to emerge from next month’s elections. Marfin Analysis estimates that in order for the country’s main banks to restore their capital base and to strengthen their Core Tier I index up to the 10 percent threshold, National Bank will need to find 6.6 billion euros, Eurobank must get 4.6 billion, Alpha needs 2.6 billion and Piraeus should draw 4.6 billion euros. and..... Venizelos bids for more time  As Lagarde seeks implementation, PASOK chief says Greece should get extra year to meet targets In his first speech on the campaign trail on Thursday, PASOK leader Evangelos Venizelos said that he would push for the European Union and International Monetary Fund to grant the country an extra year to meet its fiscal targets. Venizelos’s address came moments after IMF Managing Director Christine Lagarde stressed the importance of Greece implementing the fiscal adjustment program it had agreed with its lenders as part of the country’s second bailout. Speaking at an indoor arena in the Athens neighborhood of Nea Smyrni, Venizelos slammed the so-called “anti-memorandum” parties, which oppose the terms of Greece’s new bailout, but said that if PASOK is part of a coalition government after the May 6 elections, he would attempt to convince the EU and the IMF to give the country more time to meet the conditions of the new loan agreement. “In June, Greece has to decide which measures it will implement to reduce spending by 11 billion euros by the end of the adjustment period,” he told PASOK supporters. “It falls upon us to decide this and we propose that the country push for something it can achieve easily: adjustment not over two years until 2014 but over three years, until 2015. The adjustment should be softer, more friendly for citizens and more friendly on growth.” PASOK and New Democracy have run into problems this week in drawing up their candidate lists, with some hopefuls rejecting the chance to stand. ND announced its list on Wednesday but at least one candidate stepped aside yesterday. PASOK finalized its list last night. A few hours before Venizelos’s speech, Lagarde told journalists in Washington that “implementation, implementation, implementation” of the fiscal program was the only option for Greece. “Over the last six months, we have devoted a lot of time to issues relating to Greece,” said Lagarde. “A lot of things have happened in Greece since last September… the conditions we set with the troika have been implemented, laws have been passed. But I will insist on my previous response: implementation, implementation, implementation.” Lagarde added that more work needed to be done in terms of collecting revenues and taxes.