NBG to raise funds via sale of assets and subsidiaries
After Alpha, Piraeus and Eurobank, National Bank of Greece is also preparing to cover its additional capital requirements, as determined by the Bank of Greece (BoG) stress test. However National is not in favor of a share increase, opting instead for the sale of assets and subsidiaries.
Management will submit its plan by April 15 and is already engaged in talks with the central bank about drafting its strategy. After submitting the detailed plan, including a timetable, the bank will have to consult with the BoG about the final shape of the program to cover its needs.
National intends to find the necessary funds from internal sources i.e. sale of subsidiaries, assets etc – of which there are plenty, according to some of its officials – without resorting to a share capital increase. Alternatives could include the sale of Ethniki Insurance and a stake in Turkey’s Finansbank exceeding 40 percent. Still, sources say that the bank’s management is being advised by some quarters to proceed with a capital increase and take advantage of the huge investor interest abroad in banking shares.
