Greece goals to finish the re-privatization of its banks by early October with the sale of its remaining stake in National Bank (NBG), based on two sources accustomed to the matter on Wednesday.
The deliberate sale marks a rebound for the Greek banking sector, which was bailed out throughout a debt disaster during which Greece practically dropped out of the eurozone, and worldwide lenders imposed strict austerity measures in return for loans.
It additionally means an finish to the bailout fund, referred to as HFSF, which was launched in 2010 to guard Greece’s greatest banks and restrict contagion throughout Europe’s monetary system.
The fund nonetheless owns 18.4% of National Bank, Greece’s largest lender, with a market worth of seven.2 billion euros. It plans to promote 10%-13%, and the rest can be transferred to Greece’s sovereign wealth fund, the sources informed Reuters.
“The exact stake and timing for the sale will be decided next week,” one of many sources stated.
HFSF started divesting its stakes final yr after injecting about 50 billion euros to prop up the 4 largest Greek banks in return for shares throughout the 2009-2018 debt disaster.
The transfer was seen by buyers as an indication of Greece’s financial restoration, though many abnormal Greeks are nonetheless struggling the long-term results of the disaster.
The fund bought its holdings in Eurobank, Alpha Bank, Piraeus Bank and a part of its stake in NBG to international and native buyers.
A second official stated that if there’s sturdy demand, then the federal government would possibly promote 13% of NBG.
“The stake will be sold via a book-building process and a public offering,” the second official added.
HFSF has employed JPMorgan as an adviser, each sources stated.
Source: www.dailysabah.com