The HFSF plans to sell a 10-13% stake and the rest will be transferred to Greece’s sovereign wealth fund, two sources said.
Greece plans to complete the re-privatization of its banks by early October by selling its last stake in National Banktwo sources familiar with the matter told Reuters on Wednesday.
The planned sale marks the recovery of Greece’s banking sector, which was bailed out during the debt crisis, when Greece nearly left the euro zone and international lenders imposed strict austerity measures in exchange for loans.
It also marks the end of it Financial Stability Fundwhich was created in 2010 to protect Greece’s largest banks and limit the contagion of the crisis throughout Europe’s financial system.
The HFSF still owns 18.4% of National Bank, Greece’s largest banking institution with a market value of 7.2 billion euros.
It plans to sell a 10-13% stake and the rest will be transferred to Greece’s sovereign wealth fund, the sources said.
“Decisions on the exact size of the stake and the timing of the sale will be made next week,” one source told Reuters.
The HFSF began divesting from the banks last year after investing around 50 billion euros to prop up the four biggest Greek banks.
The move was seen by investors as a sign of Greece’s economic recovery, although many Greeks are still suffering the long-term effects of the crisis, Reuters notes.
A second official said that if there is strong demand then the government may sell 13% of National. “The stake will be sold through the tender book and public offer process,” the second official added.
Source: Skai
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