Greek bank stress tests delayed

The international community has postponed bank stress tests for Greece to give the country breathing space as Athens prepares to test the success of its European roadshow last week by raising more money in the capital markets.
The so-called “troika” – the International Monetary Fund, European Commission and European Central Bank – has agreed with Greece’s central bank to delay testing the solvency of the country’s struggling bank sector by one month to the end of October.

The delay means that the banks’ nine-month results could be assessed, as well as the outcome of a €1.7bn capital raising by National Bank of Greece, the country’s largest lender, which is due to be completed next month. “A successful offering by NBG would boost investor confidence ... It would also accelerate mergers and acquisitions already under discussion,” said a senior Greek banker.

News source: FT.com link: article