LONDON (SHARECAST) - Greece plans to recapitalize its banks to meet a 9 per cent capital buffer requirement by having them issue common shares and convertible instruments, according to a report from Reuters.
According to sources with knowledge of the plan the common shares would make up 6% of the requirement with the convertibles covering the rest.
Meanwhile, Greek finance minister Yannis Stournaras announced that the Troika (representatives from the International Monetary Fund, European Commission and European Central Bank) has refused to make concessions on labour market reforms.
Thus, the Greek news web page eKathimerini said that Athens will move ahead on presenting the bill on labour market reforms in Parliament on November 5th despite opposition by one of the governing coalition’s smaller parties. European policy makers hope to have the Troika’s final report on Greece by the time of the November 12th Eurogroup meeting.
At the same time, German paper Der Spiegel is reporting that the Troika wants a debt restructuring. However, German finance minister Wolfgang Schäuble rejected the possibility of another haircut on a radio interview with Deutschlandfunk saying that it’s unrealistic to expect public or private bondholders to take losses on Greek holdings.