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National Bank of Greece considers sale of 100% of Finansbank but not before ‘stress tests’ results

Greece’s biggest bank National Bank is considering options to meet any potential capital shortfall after a stress test later this year but has not finalised plans, which include options for majority-owned Finansbank in Turkey, a source at the bank told Reuters on Monday.

Greek press reported on Monday that NBG is considering shedding all of its 99 percent-owned Turkish subsidiary Finansbank as part of an updated business plan it aims to submit to the European Union’s competition authority.

“We are looking into alternative proposals, as any bank should do, to promptly cover possible capital needs,” the source said.

“In this phase and until the stress test is completed, any projection on what specific strategy the bank will choose is premature.” the source said. (Reuters)

According to economic news website, the National Bank of Greece plans the sale of 100% of Finansbank and is been reportedly assisted by three international firms to proceed with the investigation of investors’ interests.

The management of the National Bank has submitted a request to DGComp. The request refers not only to extension of the timetable for the sale percentage of Finansbank, but now the sales percentage concerns 100% of the Turkish subsidiary.

Under the original schedule, the National Bank had to reduce its stake in Finansbank by 40%, bringing its participation to 60% by late 2015. In fact, the original schedule was to reduce the percentage in two stages but the attempt failed due to the political developments in Greece, and the adverse climate in global markets.

As revealed in April 2015,  when the first attempt of allocate the percentage of Finansbank turned fruitless, the then new management of the National Bank investigated the possibility to sale 100% of the Turkish subsidiary. (full story in Greek

Making a short summary of the failed attempt, notes that the interest to acquire the Finansbank did not come from the banking sector like big banking groups but from hedge funds and some individual businessmen like the former owner.

PS I remember that it was considered a big and successful investment when the National Bank acquired the Finansbank back in 2006. It maybe returned to Turkish banker Hüsnü Özyeğin after all these years.

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One comment

  1. Giaourti Giaourtaki

    Sell it to the Germans, they’ve built a whole fucking city only for the purpose of constructing cars – they are even that crazy that they call their train-station there “Autostadt” – and just to sell more cars they’ve also changed their laws to make lights for cyclists and riders a duty as since then drivers can drive much faster, so they can do the same with banks, it’s naturally, may be on the island Alan.