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Athens Macedonian News Agency: News in English, 13-04-08
CONTENTS
[01] Greek banking sector poised for substantial changes
[01] Greek banking sector poised for substantial changes
AMNA -- The Greek banking sector is poised for substantial changes
following Sunday's decision to postpone a merger plan between National
Bank (NBG) and Eurobank and to proceed with separate recapitalizations,
abandoning the aim of recapitalizing a unified group after completion
of a legal merger in June.
The four systemic banks in Greece will proceed with separate
recapitalizations (Alpha Bank and Piraeus Bank have already started
relative procedures and have called for general shareholders' meetings
to approve share capital increase plans).
The central Bank of Greece (BoG), in a statement issued late on Sunday
said that a recapitalization process for all four systemic banks (National
Bank, Alpha Bank, Eurobank and Piraeus Bank) will proceed as scheduled
with the aim to be completed before the end of April. The Hellenic
Financial Stability Fund (HFSF)will fully cover its part in the share
capital increase schemes and has already paid in advance the necessary
capital, part of the 50 billion euros approved and earmarked in the
framework of a financial aid programme agreed for the recapitalization
of the Greek banking sector. The stability of the Greek banking system
is therefore secured, as are all bank deposits, the central bank noted.
Shortly after the statement released by the Bank of Greece (in agreement
with the troika), National Bank's and Eurobank's managements notified
the central bank that they were unable to raise the 10 pct of private
capital needed for their recapitalization. As a result, the Financial
Stability Fund will begin procedures to take over control of the two
banks and proceed with their recapitalization.
The Fund, as the main shareholder of the two banks, will decide whether
the merger plan will proceed at a later stage, or whether the two banks
will be sold. A Finance ministry official said that merger procedures
were temporarily postponed and the Fund will have a final decision over
the future of the merger plan. Responding to reporters' questions over
whether the Fund would be able to decide on the sale of the two banks
separately, the official said that the Fund can reach any decision it
wanted, based on its criteria.
Meanwhile, Alpha Bank and Piraeus Bank are expected to hold extraordinary
general shareholders' meetings to approve their share capital increase
plans. The two banks' managements expressed their full optimism that
they would maintain their private status by covering a 10 pct private
participation needed in the share capital increase plan.
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