Greek banks receive 18bn euros from bailout fund

Greek cash machine Greek banks have received fresh funds to bolster their finances

Four Greek banks have received 18bn euros (£14.4bn, $22.6bn) as part of the nation's most recent bailout.

The funds will be divided between National Bank, Alpha, Eurobank and Piraeus Bank.

The money has been released by the European Financial Stability Fund to the Greek body in charge of distributing the funds.

It is part of Greece's second bailout that was signed-off by the European Union and the IMF in March.

That deal was for 130bn euros and hinged on an agreement by Europe's major banks and other financial institutions to write-off a large part of their loans to Greece.

A report on Monday said that National Bank, the biggest Greek lender, has received 7.43bn euros, the largest share of the new financing.

The report from the AFP news agency said that Piraeus bank will receive 4.7bn euros, Eurobank will get 3.97bn euros and Alpha is to be handed 1.9bn euros.

The Hellenic Financial Stability Fund (HFSF) is in charge of distributing that money.

The plan is for it to provide up to 50bn euros in return for shares in Greek banks.

Greek banks have been unable to raise money on the international markets so have been relying on the European Central Bank (ECB) and the Bank of Greece for funding.

Up to the end of January, Greek banks had borrowed 73bn euros from the ECB and 54bn euros from the Bank of Greece.

More on This Story

More Business stories

RSS

Features

  • Two women in  JohanesburgYour pictures

    Readers' photos on the theme of South Africa


  • Worcestershire flagFlying the flag

    Preserving the identities of England's counties


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two


  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.