Friday March 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
National Bank determined to remain in the Turkish market

By Yiannis Papadoyiannis

National Bank sources made clear on Wednesday that the upcoming 2.5-billion-euro share capital increase is to ensure that the group retains its majority stake in Turkish subsidiary Finansbank and its presence in the major market of Turkey.

The same sources stressed that despite the strong pressure it has been experiencing, the group is not discussing the sale of a controlling stake in the Turkish lender, while the concession of a share close to 40 percent will be done gradually and depending on market conditions.

Kathimerini has learned that certain members of the Hellenic Financial Stability Fund (HFSF), which has controlled National since its recapitalization last year, voted against a share capital increase and instead asked for the sale of Finansbank.

After the decision in favor of the 2.5-billion-euro share increase and with the sale of assets totaling 1.04 billion already approved by the Bank of Greece National will find itself overcapitalized, given that the bulk of the capital requirements that emerged during the stress test were a result of exposure to Turkey and the particularly conservative approach to the course of the neighboring countrys economy.

The BlackRock stress test had foreseen Turkeys economy contracting at an annual 3 percent clip, while according to international agencies revised estimates Turkey will enjoy a growth rate of more than 2.3 percent in 2014 and of 3.1 percent in 2015, with the World Bank holding an even more optimistic view as it forecasts growth at 2.4 percent this year and 3.5 percent next year.

The first-quarter results confirm that Finansbank is on a dynamic course, as despite the challenges it produced significant gains, compared to the losses factored in by the stress test. Now that the situation in Turkey has by and large reverted to normal, the likeliest scenario is for the countrys economy to grow, which means that Finansbank will not only avoid burdening its parent group with losses but it will also constitute a significant source of profits for National. Consequently most of the capital requirements of the stress test will not be confirmed and the lender will end up with a particularly high capital stock.

Following the PSI debt restructuring, National had found itself with negative capital, but after its managements actions during the last few months and the capital increase it will have capital of about 7 billion euros.

ekathimerini.com , Wednesday April 23, 2014 (22:49)  
Short-dated Greek yields edge up
Bourse posts weekly gains of 3.26 percent
European Central Bank considers Greek banks solvent
Italian bonds fall with Spains as Greek debt proposals awaited
China and Greece look to closer ties, as FM heads to US
Deputy Prime Minister Yiannis Dragasakis continued his visit to China on Friday by holding talks with Vice Premier Ma Kai in Beijing, where both men pledged to strengthen ties between the tw...
British Museum rejects request for Unesco mediation on Parthenon Marbles
The British Museum has turned down a request by Greek authorities for a process of mediation, facilitated by Unesco, on the subject of the Parthenon Marbles that are currently on display in ...
Inside News
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
SOCCER
AEK docked three points for fan violence
Greek second-division side AEK Athens on Friday was deducted three points by the Greek football federation for a pitch invasion by its fans earlier this month. The disciplinary committee of ...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
EDITORIAL
The same old story
One of those infamously bad practices that the political system has been accused of for years is being propagated by the new government today, as it is appointing party cadres and politician...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. China and Greece look to closer ties, as FM heads to US
2. British Museum rejects request for Unesco mediation on Parthenon Marbles
3. Short-dated Greek yields edge up
4. Bourse posts weekly gains of 3.26 percent
5. European Central Bank considers Greek banks solvent
6. Greek federation backs injured Holebas
more news
Today
This Week
1. Greek future as trade hub in limbo amid Syriza split on railways
2. Bundesbank's Weidmann says euro zone debt in 'danger zone,' opposes more aid for Greece
3. Greek gov't denies finance minister Varoufakis to resign [Update]
4. New Democracy's political council convenes to decide line opposite gov't
5. Clocks go forward one hour on Sunday
6. Berlin says has no exact information about Greek reforms
Today
This Week
1. Next Monday is D-Day for state funds
2. Total victory is unattainable
3. EU asks Greece for more reforms to speed talks on bailout
4. PM faces Merkel amid race to detail reforms
5. Some more equal than others
6. New book by ex-US diplomat delves deeper into the recesses of Greek terrorism
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.