Greece to wrap up post-crisis bank privatisations with October stake sale

Piraeus Bank SA

04/09/2024 11:32

By Lefteris Papadimas
       ATHENS, Sept 4 (Reuters) - Greece plans to conclude the
re-privatisation of its banks by early October with the sale of
its last stake in National Bank, two sources familiar with the
matter told Reuters on Wednesday.
    The planned sale marks a rebound for the Greek banking
sector, which was bailed out during a debt crisis in which
Greece nearly dropped out of the eurozone and international
lenders imposed strict austerity measures in return for loans. 
    It also means an end to the bailout fund, known as HFSF,
which was launched in 2010 to protect Greece's biggest banks and
limit contagion across Europe's financial system. 
    The fund still owns 18.4% of National Bank (NBG)  NBGr.AT ,
Greece's largest lender with a market value of 7.2 billion
euros. It plans to sell 10-13% and the remainder will be
transferred to Greece's sovereign wealth fund, the sources said.
    "The exact stake and timing for the sale will be decided
next week," one of the sources said.
    HFSF began divesting its stakes last year after injecting
about 50 billion euros to prop up the four largest Greek banks
in return for shares during the 2009-2018 debt crisis. 
    The move was seen by investors as a sign of Greece's
economic recovery, although many ordinary Greek's are still
suffering the long-term effects of the crisis. 
    The fund sold its holdings in Eurobank  EURBr.AT , Alpha
Bank  ACBr.AT , Piraeus Bank  BOPr.AT  and part of its stake in
NBG to foreign and local investors.
    A second official said that if there is strong demand then
the government might sell 13% of NBG.
    "The stake will be sold via a book-building process and a
public offering," the second official added.
    HFSF has hired JP Morgan as an adviser, both sources said.

 (Reporting by Lefteris Papadimas; Editing by Edward McAllister
and Alexander Smith)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))