Greek banks to get a short extension on cash injection

Greek banks will get an extension of a few weeks to an end-April deadline to complete a vital 27 bln euros cash recapitalisation, two senior bankers said on Thursday.

Greek banks were lobbying to ease the terms on the cash injection, arguing that unless terms are loosened they will deter private sector investors and leave nationalisation as the likely outcome.

Among their demands was an extension, saying the timeframe was tight.

"There will be a short delay of a few weeks in the banks recapitalisation," said a senior banking official who requested anonymity.

For the Greek economy, stuck in six years of recession, the fate of its four major banks is important because their lending is crucial in helping revive growth.

Another senior banker who declined to be named said on Thursday the timeframe could be extended to mid May.

"There may be an extension of two or three weeks for procedural reasons, because all the banks will implement their capital increases almost at the same time," the banker said.