Greek banks must be recapitalized before capital controls go: Eurobank chairman

Greece was forced to shut its banks and impose limits on withdrawals and capital movements to keep them from collapsing, when its talks with lenders over a third bailout hit an impasse and Greece risked having to quit the euro.

Up to 25 billion euros of Greece's latest, 86 billion euro ($97 billion) bailout by the EU and IMF have been set aside to recapitalize ailing lenders by the end of the year.

"The formation of political stability, the successful recapitalization of the banks and the restoration of liquidity are the basic conditions which will enable the removal of restrictions on capital movements as soon as possible," Chairman Nikos Karamouzis was quoted by the bank as telling a meeting with Greek business federation SEV.

Fokion Karavias, the bank's chief executive, expressed confidence that the bank's private shareholders would take part in capital increases.

(Reporting by Karolina Tagaris; Editing by David Holmes)