ATHENS, Greece - Four of Greece's leading banks are to receive a (EURO)18 billion ($23 billion) capital injection to replenish reserves which were hit by country's massive debt restructuring deal.
The country's Financial Stability Fund said Wednesday it had approved the funds' release to banks.
The (EURO)18 billion will be split between the National Bank of Greece, Eurobank, Alpha Bank and Bank of Piraeus as part of a (EURO)50 billion ($64 billion) recapitalization plan to boost their liquidity levels and keep them in business.
That recapitalization plan is a key element of the second, (EURO)130 billion ($166 billion) bailout agreement that Greece had negotiated with the European Union and the International Monetary Fund last March to stay solvent.
Greek banks suffered massive losses following a writedown of their Greek government bond holdings this year. On top of the writedowns, Greek banks have also been hit by customers withdrawing their euro-denominated savings as they hedge against the country's possible forced exit from the single currency and a return to its old devalued currency, the drachma.
The Athens Exchange continued its losing streak Wednesday, closing down 1.79 percent at 526.39, a 22-year-low.
Meanwhile, pharmacies across Greece staged a daylong strike to protest what they say are half a billion euros of unpaid dues from the country's largest health care provider.
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