Greek banks will pass the European Central Bank’s (ECB) stress test of their financial health, the chief executive of the country’s second-biggest lender, National Bank (NBG) NGBr.AT, said on Monday, Reuters reports.
The ECB will publish the results of a stress test of Greece’s four largest lenders - Piraeus (BOPr.AT), NBG, Eurobank (EURBr.AT) and Alpha (ACBr.AT) - in May to allow time for any capital shortfall to be filled before Greece leaves its bailout program in August.
“All Greek banks will pass the stress tests. The results will be encouraging,” Leonidas Fragiadakis told reporters on the sidelines of a signing ceremony with the European Investment Fund on loan facilities for small businesses.
The Greek stress test, aimed at uncovering any capital shortage before Athens exits its 86 billion-euro ($106 billion) bailout, will be carried out separately from a regular stress test of other euro zone banks.
Test results for 33 lenders from other euro zone countries will be published on Nov. 2.