Greece to begin selling bank stakes this autumn-sources

Piraeus Bank SA

17/07/2023 13:24

ATHENS, July 17 (Reuters) - Greece will this autumn
start selling stakes in its four largest banks, sector officials
and bankers said on Monday, marking the latest milestone in the
country's recovery from the financial meltdown it suffered in
previous decade.
    State-controlled bank bailout fund HFSF will sell separately
the stakes in National Bank of Greece (NBG)  NBGr.AT , Piraeus
Bank  BOPr.AT , Alpha Bank  ACBr.AT  and Eurobank  EURBr.AT  it
acquired in turn for injecting about 50 billion euros ($56.2
billion) to recapitalise the lenders during the country's
financial crisis.
    HFSF's 1.4% stake in Eurobank will be the first to be put up
for sale, according to a banker with knowledge of the matter.
The bank's management has said it plans to buy back its shares
in the second half of the year.
    "Eurobank will submit a proposal to HFSF to buy back its
shares by the end of August," a second source involved in the
process told Reuters.
    HFSF also holds a 9% stake in Alpha, 27% in Piraeus Bank and
40.4% in National Bank of Greece (NBG).
    "The second sale will probably involve a package of around
20% of National Bank of Greece," the second source said, adding
that no final decision has been taken yet.
    Shares of Greek banks  .FTATBNK  have gained about 68% so
far this year, as investors priced in Greece regaining its
investment grade status after 13 years.
    The banks have cut their bad loan ratios to below 8% in 
2022 from 45% in 2016. They have all reported strong profit in
2022, helped by higher interest rates, and hope to resume paying
out dividends next year, for the first time since the Greek debt
crisis broke out in 2010.
    "(The sale of) Piraeus Bank and Alpha Bank's stake will
follow later in the year or in 2024," the second official told
Reuters.
    ($1 = 0.8902 euros)

 (Reporting by Lefteris Papadimas; Editing by David Holmes)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
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