Recapitalization

Frigoglass on Monday announced it has reached a compromise agreement with a bondholders' commission on the restructuring and recapitalization of the group.

The Chief Executive of Greece's bank bailout fund (HFSF), Martin Czurda, submitted his resignation on Monday, after a little more than three years at the post.

The reasons behind the Austrian's resignation were not mentioned, but sources attribute it to his poor relations with the government.

A Finance Ministry bill that changes the founding charter of the Hellenic Financial Stability Fund (HFSF), set up in 2010, is opening the way for the participation of the fund in the share capital increases of banks up to the stake it already owns.

The Euro Working Group gave the green light on Friday for the completion of the third bailout review in principle, but property auctions are still causing concern as they are seen as crucial to determining the course of Greek banks and whether or not a new recapitalization will be required.

The European Central Bank needs greater oversight and more accountability, as it has strayed into the realm of political decision-making but without the necessary scrutiny, global watchdog Transparency International said in a report on Tuesday.

National and Piraeus banks still haven't completed their administrative changes, a process that is necessary for them to move on after their recapitalization and restructuring.

Eurogroup President Jeroen Dijsselbloem

– A lot of progress has been achieved by Greece, good cooperation.

– Unresolved issues include the governance of banks and household insolvency with more work needed towards the recapitalization of Greek banks – a key milestone in the bailout deal.

– More work is needed before bailout funds are given.

The Greek government on Tuesday issued a ministerial council act on the details of the recapitalization of banks defining an 8.0 % interest on bonds and mentioning the operation of CoCos (convertible bonds) with which Hellenic Financial Stability Fund will cover additional capital needs of Greek banks.

Greece’s finance ministry and the country’s main lenders expressed on Sunday their optimism about the outcome of the third bank recapitalization, following the announcement of the results of European Central Bank’s stress tests on Saturday.

The new draft bill on bank recapitalization will be voted by Greek Parliament on Saturday night. The bill envisages that all actions should have been completed ahead of the January 1, 2016, bailout so as to avoid any risk of a bailout in deposits.