ATHENS, Greece (AP) — Greece's finance minister said Monday he was confident the country's banks will fare well in EU-wide stress tests that aim to find potential vulnerabilities in the financial sector.
Six Greek banks, which make up about 90 percent of the country’s market, are among the 91 banks undergoing stress tests by the European Union. The results are due to be announced after stock markets close Friday.
"Greek banks are facing the stress tests. We are sure that they will be able to emerge unscathed," Finance Minister George Papaconstantinou said in a speech at a business luncheon.
The government is currently considering a €701 million ($911 million) offer by private Piraeus Bank to buy stakes in state-controlled ATEBank and Hellenic Postbank.
"Every proposal that is made, … we examine with great care," Papaconstantinou said.
All three Greek banks are on the stress test list, long with the National Bank of Greece, EFG Eurobank Ergasias and Alpha Bank.
The stress tests simulate how lenders would fare if the economy worsens sharply, financial market conditions deteriorate and borrowing costs soar. They will also examine banks’ exposure to European government debt and the quality of the capital they currently hold against risks.
