The Greek government has decided to inject 18 billion euros into the four largest banks in order to make these banks be able to get further financial support from the European Central Bank.
This long-awaited capital injection will be carried out through the bonds of European financial stability mechanism, National Bank of Greece, Alpha Bank, Euro Bank and Piraeus Bank will receive the bailout. According to an official of the Hellenic Financial Stability Fund (HFSF), these funds have been paid.
HFSF is a relief institution established to support the sluggish domestic banks. National Bank of Greece has been injected 6.9 billion euros, Alpha Bank has obtained 1.9 billion euros, Euro bank has got 4.2 billion euros and Piraeus Bank has recieved 5 billion euros. All the four banks will publish the first quarter financial statements this week. The bailout was announced when Greece may get 3 billion euros of additional aid, which is remaining funds of the first time aid.
Greece is experiencing the five consecutive year of recession and political instability, and the banking sector is the hardest hit industry by a variety of uncertainties.