Friday September 19, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
EU clears National Bank of Greece's restructuring plan

The European Commission has approved National Bank of Greece's (NBG) restructuring plan, which includes reducing NBG's stake in Turkey's Finansbank .

NBG was one of Greece's big four banks that were rescued with state aid during the country's debt crisis. The Commission then reviewed NBG's business plan to see if it was in line with EU state aid rules.

"The measures already implemented and those envisaged in the future will enable the bank to fully restore its long-term viability, while limiting the distortions of competition brought about by the state aid granted," the Commission said on Wednesday.

NBG, majority owned by Greece's bank rescue fund HFSF which was funded with 50 billion euros from the country's bailout, has begun to implement salary cuts, branch closures and other cost-cutting moves, including an early retirement plan.

The restructuring plan also envisages NBG cutting its holding in its Turkish subsidiary Finansbank to strengthen its capital position. NBG has almost full control of Finansbank and will keep a majority stake.

Finansbank has been a steady cash cow for NBG. The Greek bank's first quarter profits were higher than expected, helped in part by Finansbank, which contributed 63 million euros or 35 percent of the group's net earnings.

The Commission also said that a relatively limited downsizing of NBG would be enough to limit any distortions to competition and did not ask the group to shrink its Greek banking activities.

It said NBG shareholders and subordinated debt holders had contributed significantly to reducing the amount of state capital aid that was injected, having taken part in capital raising by the bank.

"The injected state aid did not bail out historical shareholders who have been almost completely diluted, the Commission said.

The Commission is expected to soon approve the restructuring plan of Piraeus Bank, the country's second-biggest lender by assets after NBG. [Reuters]

ekathimerini.com , Wednesday Jul 23, 2014 (15:31)  
Cyprus civil servants strike called off
Bank of Cyprus to sell UK loan portfolio
Elliniko investors eye Cyprus project warily
Auctions lead to surprise stock growth
Mayors resisting evaluation to face disciplinary action
Mayors and municipal employees who refuse to take part in a civil service evaluation scheme the government has undertaken as part of commitments to international creditors will face discipli...
Fyssas rally demonstrators face prosecutor after clashes
Sixty-four people arrested in Keratsini, a suburb of Piraeus, on Thursday, following clashes with police during an anti-racist march marking the one-year anniversary of the murder of rapper ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their countrys independence or whether they will remain citizens of the United Kingdom of Great Britain and Northern Ireland. What was alread...
EDITORIAL
Breathing room
Even Greeces biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Mayors resisting evaluation to face disciplinary action
2. Fyssas rally demonstrators face prosecutor after clashes
3. PM in energy talks ahead of crucial meeting with Merkel
4. Attiki Odos Lamia exit to close Sunday
5. Young offenders get stipend for TEI admission
6. SYRIZA MPs want Lagarde to testify in connection with list probe
more news
Today
This Week
1. Dozens of arrests at march to mark anniversary of Fyssas murder
2. EIB signs deals with Greece for 815-mln investment in infrastructure projects
3. Syntagma metro station to close for Fyssas tribute concert
4. Samaras heads to Azerbaijan for two-day visit
5. ECB eyes banks capital quality as target for supervisory power
6. Hardouvelis signals Greece may skip IMF loans to exit aid curbs
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.