The recapitalization of the Greek banking system is a prerequisite for boosting liquidity in the real economy and achieve recovery after five years in deep recession, outgoing Greek Prime Minister Lucas Papademos told an economic conference in Athens on Friday.

The recapitalization plan is pushed back after the May 6 snap general polls, according to the latest local media reports, citing government officials.

"The successful completion of the recapitalization process is a prerequisite for injecting capital into the market and boost development," Papademos said, addressing a forum organized by his office and the European Commission on supporting entrepreneurship and in particular small and medium-sized enterprises (SMEs) with European funds.

Banks need to assume their responsibilities in exchange for the capital support by the state and finance SMEs which in return should boost employment, the Greek premier stressed, as some major Greek banks were expected to publish later on Friday significant losses in 2011.

On Thursday the European Financial Stability Fund released some 25 billion euros (33.03 billion U.S. dollars) to the Greek Financial Stability Fund (HFSF) -- about half of the total amount that is estimated to be used for the recapitalization plan, Papademos noted, adding that the funds will cover losses suffered due to the voluntary Greek debt restructuring plan.

The second leg of the so-called Private Investment Intitiative (PSI) scheme agreed between the Greek government and private sector investors to erase the Greek state debt load by a third as part of international efforts to avoid a Greek chaotic default, is expected to end on Friday.

Greece had given a final deadline that expired on Friday to holders of Greek state bonds issued under non-Greek law to exchange them with new ones of lower value and longer maturities.

The Greek banking sector recapitalization scheme is scheduled to be finalized after the early elections, since there are still technical issues to be resolved, Greek newspapers reported, citing government sources. According to the media reports, the key issue is to safeguard the private character of the banks that will receive aid.

"Greece will overcome the crisis ... There is no Europe without Greece, there is no euro without Greece," Antonio Tajani, Vice-President of the European Commission and Commissioner for Enterprise and Industry, said addressing Friday's event on behalf of the European counterparts who along International Monetary Fund support Greek efforts to overcome the debt crisis with multi-billion loans over the past two years.

The harsh austerity and reform program implemented in turn for the international assistance has fuelled recession and Greek citizens' disappointment and anger though.

During Friday's forum, participants, including Papademos, stressed that beyond budget cuts, the next administration to emerge after the elections should swiftly push through policies that will strengthen development.