Greek banks recap via common shares with restrictions: source

ATHENS: Greece has agreed to recapitalize its struggling banks after a planned bond swap largely through common shares with restricted voting rights, a banking source told Reuters on Saturday.

The banks are expected to require recapitalization because of impaired loans and losses from a bond swap to ease Greece's debt burden.

Investors were worried that banks would fall under state control if they were recapitalized via common voting shares rather than non-voting instruments. The inclusion of restricted voting rights suggested the banks would remain privately-run to a certain extent at least.

"Greek banks' recapitalization will be done mainly through common shares with restricted voting rights," a senior banker said without providing further details. (Reuters)