Saturday October 25, 2014 Search
Weather | Athens
19o C
12o 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 country’s economy.

The BlackRock stress test had foreseen Turkey’s 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 country’s 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 management’s 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)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.