The management of Greece’s bank bailout fund (HFSF) has reacted strongly against Eurobank’s decision to call an extraordinary general meeting of shareholders for a share capital increase based on the existing legal framework.
Late on Wednesday the HFSF sent a letter to Eurobank’s administration demanding it halt its procedure to the increase under the existing law as that would lead to its coverage only by private funds. This morning the governing board of Eurobank was set to convene to align itself with the guidelines of its stakeholder, the HFSF.
Sources said yesterday that Eurobank’s administration informed the HFSF in the last few days of its decision to propose an immediate share capital increase so as to cover its capital requirements with a full refusal of the pre-emption rights of existing shareholders.
Eurobank’s intention was to perform the increase using the existing legal framework and have it covered by private funds that have expressed a strong interest in participating in the process, while minimizing the losses for the current stakeholder, the HFSF.
The fund, on the other hand, appears irked by the decisions of the bank’s officials, arguing that if it does not participate, its interests – and therefore those of taxpayers – will be harmed.