HFSF: Divestment strategy for the benefit of the public interest and financial stability

The Financial Stability Fund (FSF) announced the completion of the process of updating the Divestment Strategy, which was drawn up in the framework of the law (3864/2010), has been agreed with the parties involved and has received the approval of the Ministry of Finance.

As the HFSF points out, the Divestment Strategy complies with the principles defined in the HFSF’s legal operating framework as well as all relevant legal and regulatory provisions.

The Law highlights disinvestment as a central option of the HFSF, as important as its main mission, which concerns the maintenance of the stability of the banking system for the sake of the public interest, and sets as its completion horizon the end of 2025, which is the end date of the operation of the Fund.

The Fund is fully committed to the effort to dispose of its holdings in the systemic banks before its expiration in an orderly and compatible manner with the maintenance of financial stability while ensuring their fair value.

The sale of the shares in any of the Greek systemic banks is fully consistent with the mission of the HFSF for financial stability and reflects the progress of Banking sector in terms of addressing past weaknesses and achieving recurring operating profitability.

The disinvestment of the Fund’s holdings, it is emphasized, will provide wider benefits to the Greek economy and the public interest, further enhancing the liquidity and efficiency of the Greek capital market and contributing to providing more opportunities for direct investment in the Greek banking sector, which is being upgraded by ensuring the its further development into full private ownership.

HFSF will identify opportunities to implement well-planned transactions in the most advantageous manner, always in compliance with the applicable legal framework. It will undertake the same initiatives but at the same time will consider any approaches from investors and proposals that the Banks may submit.

Before deciding to pursue a share sale, the HFSF will consider its financial stability obligations as well as ensuring fair value for its holdings. In any event, a transparent and competitive process will be followed, while maintaining appropriate confidentiality.

The Strategy clearly defines the basic principles served during the divestment process:

1. Clarity of purpose within a clear and concise strategy that sets the general parameters for individual trades.

2. Transparency about strategy by communicating clear strategic objectives to stakeholders.

3. High standards of operation with the observance of best practices which are fully compatible with the applicable legal and regulatory framework.

4. A transparent and competitive process which provides for all types of transactions that bona fide investors will be assured of being treated in a transparent and impartial manner. The HFSF will not pursue a bilateral negotiation or transaction that does not include a competitive process, the timing of which will be announced at the start of the transaction.

During the disinvestment process, the HFSF will seek to enhance the value of its portfolio, although the design, structure, process and execution of individual transactions will be adapted to market conditions and the performance of the Banks.

The HFSF will not commit to a specific timing or sequence of transactions within the overall three-year divestment framework, in order not to burden the commercial value of its portfolio. Furthermore, it does not consider individual transactions to be a benchmark for subsequent transactions to be designed and executed in light of the then prevailing conditions.

The chairman of the Board of Directors of the HFSF, Andreas Verykios, said: “The disinvestment is a particularly important and complex process which will be implemented with full respect for the principles of transparency and efficiency for the benefit of the Greek economy. The Fund will be asked to make decisions weighing speed against economic efficiency in an environment of uncertainty. The fact that the parties involved have agreed on the divestment strategy guarantees that the project will be implemented with credibility and unwavering commitment to the public interest.”

The Managing Director of the HFSF Ilias E. Xirouhakis made the following comment: “The publication of the HFSF’s disinvestment strategy is a milestone in a long course of major challenges which the Fund has, over time, successfully coped with. We are particularly proud and optimistic as despite the difficulties of the current situation, the Greek systemic banks have spectacularly improved their performance and are considered ready to move dynamically in the coming years for the benefit of their shareholders, the public interest, the further development of our national economy and of course of financial stability”.

RES-EMP

Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.