Thursday November 27, 2014 Search
Weather | Athens
12o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Brussels: HFSF canít take part in Eurobank increase

By Yiannis Papadoyiannis

The European Commissionís decision to veto the Hellenic Financial Stability Fundís participation in Eurobankís share capital increase has alarmed the fund, which holds a 95 percent stake in the bank. The competition authorities in Brussels have demanded that the 3-billion-euro increase be covered by private funds by priority, with the HFSF reduced to an auxiliary role, participating only if the increase cannot be fully covered.

European Commissioner Joaquin Almunia sent a letter to Finance Minister Yannis Stournaras a few days ago highlighting the need for the Eurobank increase to be covered by the private sector. If that happens and the HFSF is forced to abstain from the process, its holding will go down to just 35 percent. Eurobank has already secured pledges from three strategic investors for a total of 4 billion euros Ė i.e. 1 billion more than the share increase.

Such a development would upset the plans of both the government and the fund, as the aim had been for the HFSF to cover a significant part of the increase so as to retain a 50 percent stake in the bank. The fundís participation would have also assisted the government politically, as it would have curbed the reaction to the new share price.

HFSF officials have been applying great pressure on the creditor representatives over the past few weeks, stressing the importance of its participation in the Eurobank share capital increase. They underscored that abstaining from the process would considerably reduce the chances the HFSF Ė and by extension Greek taxpayers Ė would have of recovering the best part of the 5.8 billion euros spent on Eurobankís recapitalization last year.

In contrast, if the HFSF retains a commanding stake in the lender, and forecasts for the countryís return to growth and the credit sectorís recovery prove correct, then the fund would later be able to sell its stake to private investors at a significantly higher price, thereby recovering most of the amount invested last year.

ekathimerini.com , Sunday March 23, 2014 (21:09)  
Bourse index recovered on Wednesday
EU finds seed money for investment plan to unlock EIB funds
Greek, German, Portuguese, Spanish debt to benefit most from ECB QE - ABN Amro
Greeceīs OPAP delays launch of video lotto machines
Chief suspect in Piraeus bar shooting arrested
A 31-year-old Albanian man believed to be behind at least four shootings in Athens that resulted in one death was arrested in the early hours of Wednesday, the Greek Police has said. He has ...
Greece scrambles to find food, shelter for 700 migrants on crippled ship
Local authorities and Red Cross volunteers on Crete were racing Wednesday to prepare shelter and food for hundreds of immigrants on a crippled freighter being slowly towed to safety by a Gre...
Inside News
SOCCER
Atletico drubs Olympiakos 4-0, leaving Reds with slim chances of CL qualification
Atletico Madrid avenged its 3-2 defeat in Piraeus in September with a 4-0 win over Olympiakos on Wednesday, meaning the Greek champion only has mathematical hopes left for a spot in the next...
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
Inside Sports
COMMENTARY
Beware of the fallen idols
Akis Tsochatzopoulos, a legendary figure of the Greek socialist movement, a man who came very close to taking over the party that governed the country for half of the time following the fall...
EDITORIAL
The hard truth
The coalition government must tell the truth to the Greek people, even if this entails admitting to mistakes made over the last few months. The countryís citizens are fully aware of how cruc...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. Chief suspect in Piraeus bar shooting arrested
2. Bourse index recovered on Wednesday
3. Greece scrambles to find food, shelter for 700 migrants on crippled ship
4. Greek diplomat dies in fall under Thai train
5. EU finds seed money for investment plan to unlock EIB funds
6. Greek, German, Portuguese, Spanish debt to benefit most from ECB QE - ABN Amro
more news
Today
This Week
1. Greece scrambles to find food, shelter for 700 migrants on crippled ship
2. Greek, German, Portuguese, Spanish debt to benefit most from ECB QE - ABN Amro
3. Chief suspect in Piraeus bar shooting arrested
4. Greek diplomat dies in fall under Thai train
5. EU finds seed money for investment plan to unlock EIB funds
6. Troika talks to continue after failure to wrap up negotiations in Paris
Today
This Week
1. Give Greece a chance
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Scientists expand excavation of ancient Amphipolis
4. Extremism from a bygone era
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Coscoís Greek unit adds multinational rail-freight client
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.