According to Reuters, Ms Koenig, Head of the Single Resolution Board, estimated that the upcoming recapitalization of the Greek banks will be mainly covered by state funds. According to Reuters, Ms Koenig, Head of the Single Resolution Board, estimated that the upcoming recapitalization of the Greek banks will be mainly covered by state funds, and stated that their case will not be a model for future bank rescues in the Eurozone as Greek banks’ troubles mainly reflect the recent unfavorable political developments.
She referred to the Bank Recovery and Resolution Directive stating that it has been designed to tackle cases of individual failing banks and not general banking crises. Finally, Ms Koenig stated that in the upcoming recapitalization of Greek banks senior creditors may be subject to bail in, while depositors will certainly be protected.
http://english.capital.gr/News.asp?id=2372152
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