Greece Banks already need further bailout asistance - keep in mind , they just got a lollipop December 19 , 2012 and haven't even qualified for the 2013 portion of the current bailout.....Continued crisis environment of Greece continus unabated.....

Keep in mind Greece just got their latest bailout lollipop December 19 , 2012.....

http://www.thejournal.ie/greece-eu-imf-ecb-bailout-funds-720655-Dec2012/

Greece to receive full EU-IMF bailout funds by Wednesday after long delay

Greece will receive €16 billion to recapitalise its banks as part of the deal.

18/12/12 2,415 Views  23 Comments

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Image: AP Photo/Petros Giannakouris

GREECE WILL RECEIVE all of a long-awaited €34.3 billion  loan tranche from the EU and the IMF by Wednesday, a Greek official has said, hours after an initial payment was carried out.

“The full amount should arrive by Wednesday,” the official told AFP on condition of anonymity.

“A payment of €7 billion was made on Monday. There will be another €11.3 billion for debt buyback plus €16 billion to recapitalise Greek banks,” he added.

Following a decision by European leaders last week, another €14.8 billion from Greece’s ongoing EU-IMF assistance package is to be disbursed in the first quarter of next year.

Greece had been denied bailout funds since June owing to reform delays and a protracted electoral campaign that created uncertainty about the future of its promised fiscal overhaul.

The recession-hit country urgently needs the money to settle a €31.9 billion debt buyback carried out last week.

It must also recapitalise Greek banks that took a massive hit to their books in the spring from a write-down, a previous attempt to bring Greece’s huge sovereign debt under control.

and here we are in January 2013 and the bailout of the banks is already falling apart....

http://www.zerohedge.com/news/2013-01-07/greek-banks-merkel-please-maam-can-we-have-some-moar-or-here-comes-bailout-4

Greek Banks To Merkel: "Please Ma'am, Can We Have Some Moar", Or Here Comes Bailout #4

Submitted by Tyler Durden on 01/07/2013 19:19 -0500

• Blackrock
 
• Bond
 
• Greece
 
• non-performing loans
• Reality
 
• Recession

As loathed as we are to say "we told you so,"but we did and sure enough eKathimerini is reporting this evening that: thanks to the 'voluntary' haircuts the Greek banks were force-fed via the latest buyback scheme and the political uncertainty causing non-performing loans (NPLs) to rise (in a magically unknowable way), they will need significantly more 'capital' to plug their increasingly leaky boats. The original Blackrock report from a year did not foresee a rise in NPLs (which Ernst & Young now estimates stands at 24% of all loans) and the buyback dramatically reduces the expected profitability of the banks as it removes critical interest payments that would have been due. Whocouldanode? Well, plenty of people who did not just buy-in blindly to the promise of future hockey-stick returns to growth.Expectations are now for the Greek bank recap to be over EUR30bn.

Via eKathimerini,

The country’s main banks are considering requesting additional funds for their recapitalization.

Senior bank officials say that the rapid deterioration in financial conditions caused by the back-to-back elections in mid-2012 has led to a greater increase in nonperforming loans than originally foreseen in the BlackRock report a year ago. They add that banks should proceed to greater share capital increases in order to respond to the new reality.

Ernst & Young estimates thatnonperforming loans in Greece approached 24 percent of all loans at the end of 2012.

The bond buyback dealt another great blow to the credit sector that has made a revision of the capital requirements necessary. The Bank of Greece had estimated that operating profits for National, Alpha, Eurobank and Piraeus for the 2012-14 period would amount to 11.09 billion euros, which had been excluded from the calculation of the lenders’ capital needs. One of the main sources of those future revenues would have been the interest from the bonds amounting to 16 billion euros that banks had in their portfolios. However, the so-called voluntary sale of the bonds entailed a loss of those revenues for the banks.

According to estimates for the country’s four main banks, the buyback signifies a revenue reduction of at least 1.5 billion euros, thereby increasing their capital requirements. The Bank of Greece has announced that the four systemic banks will need in the region of 27.5 billion euros for their recapitalization, but if that estimate on the buyback is upheld, the bill will reach up to at least 29 billion euros.

The four lenders’ losses from the credit risk (including loans in Greece and abroad) are estimated at 14.58 billion euros, but if the deepening of the recession is factored in, the losses would grow by about 10 to 20 percent and the capital needs would expand by between 1.5 and 3 billion euros.

As a result the capital stock of 5 billion euros formed by the Bank of Greece for future needs may have to be used immediately by the big banks, eventually taking the total bill of the recapitalization process to over 30 billion euros.

and.......

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_07/01/2013_477226

Minister warns against relaxing reform drive  Stournaras rules out extending subsidy for heating oil to more families Finance Minister Yannis Stournaras stressed on Monday that Athens cannot afford to lose momentum in its reform effort if it wants to clinch another three loan tranches over the next three months, noting that keeping tight control over public finances was a non-negotiable commitment. “We won’t get the next installment if we let up,” Stournaras said. “If the pullover starts to unravel, we’ll lose the trust we’ve started to rebuild,” he said, adding that “the worst thing we can do now is start talking about slacking off.” The disbursement of the next tranche, worth 9.2 billion euros, is due after the January 21 Eurogroup but in order to qualify for the funding the government must approve a tax law aimed at bringing in 2.5 billion euros over the next two years. The bill is expected to be voted on in Parliament by Friday. Stournaras stressed the government was in no position to make concessions, dismissing suggestions that a heating oil subsidy might be extended. He asked Greeks to “be patient for another year.” “I wish there was the fiscal capacity do to so but there isn’t,” he told Vima FM radio in response to a question about aid for poor families to buy heating oil. Last year, the tax on heating oil was raised to match that on unleaded fuel, leading the price to rise by 40 percent. Demand for heating oil has since dropped by a reported 80 percent. But, Stournaras said, many of those who qualify for a heating oil subsidy this year have not applied for it.

and....

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_07/01/2013_477232

PPC rate hike set for next week  Signs point to the government opting for a total increase of 9 percent in three installments By Chryssa Liaggou The government will announce next week the level of the first wave of rate increases for electricity consumption, which will apply retrospectively from January 1, while Public Power Corporation is trying to settle the growing pile of debts that customers owe the company. Sources say the total rate hike this year will come to 9 percent. The level of the rate increase will be determined based on the intervention by the Regulatory Authority for Energy (RAE) in PPC’s costs and the former’s recent decisions regarding the reduction of rates concerning the use of transmission and distribution networks. The government will also taken into consideration the fact that many households have seen their incomes shrink, in a bid to avoid making the price of power prohibitive. Consumers’ financial problems are best illustrated by PPC data regarding the level of unpaid debts owed to the company by its customers, which amount to 800 million euros, and the increase in the number of settlements for electricity bill debts. According to data presented in Parliament on Monday by Public Power Corporation chief Arthouros Zervos, the unpaid electricity bills settled for 2012 reached up to 700,000, from some 400,000 in 2011. The final level of the rate increases will also be given for approval to Prime Minister Antonis Samaras, and all signs at the moment point toward a total hike of 9 percent within the first six months of the year in three installments of 3 percent each. The rate rises will come with decisions for the expansion of the so-called Social Domestic Rates for socially sensitive groups, based on the regulatory authority’s proposals. The power regulator has also received demands from a number of industrial companies for the imposition of a temporary electricity rate on the medium-voltage bracket, in the same way that was applied in the cases of major industries Aluminium of Greece and Larco. The firms argue they cannot pay the rate hikes that PPC unilaterally imposed in February 2012 along with the new increases this year. and..... http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_07/01/2013_477229 Coalition faces upheaval amid list probe  Uncertain vote looms after gov’t loses 2 MPs who wanted Venizelos put on spot The country’s troubled coalition appeared set for more turmoil on Monday after its junior partner expelled two lawmakers for aligning themselves with leftist opposition SYRIZA by calling for PASOK leader Evangelos Venizelos as well as ex-Finance Minister Giorgos Papaconstantinou to be investigated by Parliament for their handling of the Lagarde list of Greeks with deposits in a Swiss bank. In a letter to Parliament Speaker Evangelos Meimarakis, Democratic Left chief Fotis Kouvelis said the two deputies, Odysseas Voudouris and Paris Moutsinas, had repeatedly strayed from the party line. Earlier in the day, Voudouris and Moutsinas had backed SYRIZA’s position on the Lagarde list. SYRIZA’s proposal, submitted to Parliament on Monday evening, called for Venizelos and Papaconstantinou to face investigation on criminal charges and added that former Prime Minister George Papandreou and current Premier Antonis Samaras should bear varying levels of political responsibility for the affair. Kouvelis’s move meanwhile left the coalition with just 164 MPs. Sources close to Samaras said they weren’t worried that the reduced majority could have an impact on two secret ballots to be held next Monday or Tuesday – one on the coalition’s proposal for a committee to be set up to probe Papaconstantinou and the other on SYRIZA’s proposal for a committee to investigate both Papaconstantinou and Venizelos. The fact, however, that the votes are secret could lead to some skeptical MPs embracing SYRIZA’s proposal for Venizelos to be put on the spot. Depending on the vote results, a committee or committees – each comprising 12 or 13 MPs – will be established and will have between 30 and 40 days to probe the minister or ministers. After this, Parliament will be called on to vote on whether to impeach one or two former ministers for breach of duty. On Wednesday, prosecutors investigating the Lagarde list affair are expected to hear the explanations of the three relatives of Papaconstantinou whose names were removed from the original list, prompting the coalition to seek a parliamentary probe into his actions.