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Greek Banks May Need Only $1.3 Billion of New Private Capital

Greece’s four biggest banks may need as little as 1.2 billion euros ($1.3 billion) of new private funds to meet their expected contributions toward filling a capital shortfall, if they succeed in raising 3.2 billion euros through debt swaps.

The Greek government said it expects the banks to raise at least 4.4 billion euros of the 14.4 billion euros needed and will make up any difference between what they get privately and the overall goal. The debt-exchange total is based on Bloomberg calculations that assume all bondholders accept the banks’ debt-exchange terms.

Two of the lenders, Alpha Bank AE and Eurobank Ergasias SA, can surpass their expected contributions just through debt swaps, underlining how capital shortfalls identified by the European Central Bank were lower than anticipated. Piraeus Bank SA, saddled with the largest...