October 25, 2015 / 3:45 PM / in 2 years

Bank of Piraeus head says optimistic private equity can meet any shortfall

A general view of a branch of Piraeus Bank at 80 Ippokartous Street in Athens March 16, 2012. REUTERS/Yorgos Karahalis/Files

ATHENS (Reuters) - Bank of Piraeus (BOPr.AT) chairman Michalis Sallas said on Sunday he was optimistic the bank could rely on private investors to meet any capital shortfall found in baseline scenario stress tests being conducted by the ECB.

Sallas said “strong interest” had been shown by international institutional investors to any capital increase.

“Based on this interest there is valid optimism that the required participation of the private sector will more than cover any capital needs which manifest on the baseline scenario of the stress test,” he was quoted as saying in a news release by the bank.

Bank of Piraeus is one of four Greek banks in line for recapitalization under the terms of an 86 billion euro ($94.75 billion) bailout that Greece has signed up to with international lenders. Banking sources say the banks’ recapitalization needs are less than 20 billion euros.

Results of the stress tests carried out by the European Central Bank to identify potential capital needs are due to be released by Oct. 31.

Reporting By Michele Kambas

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