Greek banks are in a very good position, Tsakalotos says

“Greek banks are in a very good position, adequately capitalized and face challenges that they can cope with. The challenge of non-performing loans is absolutely manageable,” Greek Finance Minister Euclid Tsakalotos said on Thursday.

Speaking in Parliament, Tsakalotos said Wednesday’s sharp fall in bank share prices was an act of speculative moves, but expressed his certainty that investors seeing in the long-term are acknowledging positive developments in the banking sector.

We have four positive developments for banks, the Greek FinMin said, adding that two of the four systemic banks do not have any urgent need for liquidity, while the other two will be in the same position by Christmas. “All banks not only have achieved their goals for reducing NPLs but have surpassed them,” Tsakalotos said, adding that “all banks passed the stress tests and that according to the FT and Morgan Stanley Greek banks are adequately capitalized and all enjoy a return of deposits”. “These are the fundamentals. And these should be at the focus, not by those who speculate, but from long-term investors who want to make money,” he said, adding that the government was in talks with all interested parties (the Bank of Greece, Hellenic Financial Stability Fund and Hellenic Bank Association) on ways to reduce NPLs. “The government believes that this challenge of NPLs is absolutely manageable,” he noted.