Saturday November 1, 2014 Search
Weather | Athens
18o C
13o 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)  
Disposable income of households fell 10.3 pct in one year
Banks unhappy with bad loans bill
State debtor numbers grew in September
Reform plan among conditions
Ministry swap halts talk of reshuffle as reforms eyed
Prime Minister Antonis Samaras on Friday appointed Nikos Dendias as defense minister, replacing outgoing Dimitris Avramopoulos, who assumes the European Commission’s immigration portfolio ne...
Turkish-Greek cooperation in Aegean helps stem flow of migrants
Closer cooperation between Greek and Turkish coast guard authorities has led to 11,000 undocumented migrants being prevented from entering Greek borders and returned to the neighboring count...
Inside News
BASKETBALL
Spanoulis played Zeus for Olympiakos against Neptunas
Captain Vassilis Spanoulis helped Olympiakos narrowly avoid an upset on Friday as it defeated Euroleague debutant Neptunas Klaipeda 85-81 in overtime in Lithuania to preserve its perfect sta...
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Spanoulis played Zeus for Olympiakos against Neptunas
2. Disposable income of households fell 10.3 pct in one year
3. Banks unhappy with bad loans bill
4. State debtor numbers grew in September
5. Reform plan among conditions
6. Ministry swap halts talk of reshuffle as reforms eyed
more news
Today
This Week
1. Archaeologists find underground vault at Amphipolis tomb
2. Man shot dead, woman injured in Vathis square attack
3. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
4. Greek retail sales rise for third month in a row
5. Germany’s 10-year bonds decline before euro-area inflation data
6. New defense minister to be appointed without reshuffle
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.