50% Greek Writedown?
What effect would it have on NBG which I believe holds about 9 Billion Euro? They wrote down a measly 1.645 Billion last quarter....what happens if they write down another 3.6775 Billion this coming quarter?
Their liquidity ratios were prety healthy I around 11.2% for Tier 1 capital, even using the stress tests they came down to 7.7% which exceeds the 5% benchmark set the EBA....but it kinda makes me wonder if a 50% haircut of those bonds was factored into the extreme stress test? What if there is a run on the deposits and higher than normal default rate on those buisness loans...the Greek public is not exactly happy with the Government at this time.
It's going to be very intresting to see what happens over the next couple of months.