July 30, 2013The Hellenic Financial Stability Fund (HFSF), Greece’s bank bailout fund, has spent 38 billion euros (33.75 billion pounds) propping up the country’s ailing bank system, three-quarters of the total it was endowed with.
About 25 billion euros were used to bolster the capital of Greece’s four biggest banks, an HFSF report said. The HFSF, set up in July 2010, spent another 13 billion to wind down eight small lenders as part of measures to shrink the country’s banking sector.
Greece’s debt crisis depleted the capital of its banks. A crippling recession turned sour a large part of their loans and a debt cut agreed last year to ease Athens’s debt load slashed the value of the sovereign bonds they were holding.