The European Central Bank on Saturday, 31 October, said that Greece's four biggest banks that suffered major losses this summer should raise nearly $15.9 billion to endure any new crisis.
The four banks are Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank.
Following the economic collapse that made the country fall into adversity, it is anticipated that the Greek economy might decline by 6% by the end of 2017. Currently, it requires $4.84 billion to meet the standard scenario of economy.
The financial world had eagerly awaited the central bank's evaluation of the required capital as the country attempts to find its way out of the economic mess.
Reports suggest that one of the biggest problems faced by Greek banks is the high number of loans given out to businesses and consumers, nearly 50%, whose repayment is in jeopardy.
The central bank's evaluated report said that around $15.9 billion will be needed for the Greek banks to confront the bad-loan issue and become operational lenders once again.
However, if stable banks fail to provide the liquidity and lending required for an economy, Greece would find it hard to come out of the current economic problem.
Although, $16 billion is a big number, it is still less than what some finance experts had feared Greece would have to pay to eradicate its economic collapse. This on the other hand, is likely to eliminate the chances of the banks wanting depositors to take the losses.
In fact, there is a possibility of the money getting raised from bank investors and from funds inthe 86 billion euro package of loans, which Greece agreed with the eurozone creditors this summer, according to The New York Times.
"I am a lot happier today and a lot more optimistic than I was a month ago," Euclid Tsakalotos, the Greek finance minister said on Saturday, accepting the Central Bank's evaluation.
