Greece’s new conservative-led coalition government named its Cabinet today, appointing a prominent banker to take over the key position of finance minister.

Greece’s four biggest commercial banks are to receive an €18bn cash injection from the European bailout fund.

Fitch ratings agency has downgraded five Greek banks, a day after giving the crisis-hit nation the lowest possible grade for a country that is not in default.

GROWING concern over the prospects of the eurozone pulled all European markets downwards yesterday, in most cases for a third consecutive day.

Greece’s second and third largest lenders, Eurobank and Alpha Bank, have announced plans to merge to better withstand the country’s acute financial crisis.

EUROPE’S banks have been asked to estimate how much additional capital they would need under two adverse scenarios as part of stress tests aimed at reviving confidence among investors.

Tens of thousands of protesters gathered in central Athens and other Greek cities today for May Day rallies fuelled by anger at expected harsh austerity measures needed to secure rescue loans for near-bankrupt Greece.

Greek youths hurled stones and broken paving slabs at riot police who responded with volleys of tear gas in central Athens today.

AIB was among the European banking stocks least favoured by analysts at UBS as it predicted a dreadful year for earnings in 2009.

THE Greek government has reached a preliminary agreement to sell Olympic Airlines, the country’s unprofitable national carrier.