The procedures for the recapitalization of the Greek banks officially commenced Monday, upon the submission of details regarding Greek bank loans which end today. According to the timetable the recapitalization is expected to be completed by the end of 2015. More specifically, the second stage of the bank stress tests will start on August 25, under condition that the situation of the Greek economy in general and the ‘red loans’ have been factored in. Towards the end of August the Bank of Greece (BoG) is expected to issue all the necessary laws for the implementation of the code of ethics for the non-serviceable loans, while the reforms on the ‘red loans’ will take effect. Banks will have to file their new business and restructuring plans to the Single Supervisory Mechanism (SSM) at the start of September, while within the first 10 days of the same month the results of the Asset Quality Ratings (AQRs) are expected to be released, which will determine the amount needed for the recapitalization. It should be noted that Greek banks will receive an immediate 10bln Euro liquidity injection in the form of bonds which will be retained in Luxembourg in a special ESM account.
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