Greek banks to receive bailout funds in coming days: source
(ATHENS) - Greece's cash-starved banks are expecting an 18 billion euro capital injection from a European Union rescue fund in the coming days, an unnamed banking source told AFP on Tuesday.
The funds are part of a 30-billion-euro envelope created to help Greece's lenders survive the severe writedown on Greek sovereign debt that was a crucial element of the second bailout package for Athens approved in March.
As part of that package, Greece last month completed a huge exchange of government debt held by private creditors worth nearly 199 billion euros ($262 billion).
In the swap, Greece's private banks are thought to have lost about 70 percent of the balance sheet value on their vast Greek bond holdings leaving them in urgent need of recapitalisation.
The process of recapitalising Greece's banks is set to end in September.
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