Friday March 6, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek bill gives rescue fund legal cover for bank capital boosts

By Lefteris Papadimas & George Georgiopoulos

Greek banks that are majority-owned by the country's bank rescue fund HFSF will be allowed to issue new shares to boost their capital at market prices, according to a draft bill that also gives the rescue fund legal cover to see its stakes diluted.

The draft legislation obtained by Reuters is part of an omnibus bill on prior actions demanded by the country's international lenders, the European Union and the International Monetary Fund, to release the next tranche of bailout loans.

The fund currently owns the majority of Greece's four biggest lenders - National Bank, Alpha Bank, Piraeus Bank and Eurobank - after injecting 25 billion euros ($34.35 billion) last summer to recapitalise them in exchange for shares.

The draft bill stipulates that the rescue fund's stakes in the banks can be diluted through equity offerings, with the HFSF waiving its rights to new shares issued by the banks.

Under the proposed legislation, the HFSF can give its green light to new share offerings by the banks at prices that are lower than those in previous recapitalisations.

The move opens the way for the planned capital increase by Greece's third largest lender Eurobank, which needs to cover a 2.945 billion euro capital shortfall that the central bank's stress test revealed this month.

Eurobank, 95 percent owned by the HFSF, was recapitalised by selling shares to the fund at 1.54 euros each. Its planned issue of new shares is expected to be priced much lower.

Under the draft law, the fund's board can decide on the price of the share offerings based on a fair value evaluation by two independent financial advisers, taking into account prevailing market conditions.

The previous law on Greek banks' recapitalisation did not clarify how the rescue fund would act regarding future capital boosts for the lenders.

Piraeus Bank on Wednesday became the second Greek lender to successfully complete a 1.75 billion euros share offering to bolster its equity capital and pay back preferred shares held by the state.

Peer Alpha Bank closed books on a 1.2 billion euro equity offering on Tuesday.

The draft legislation also sets bail in clauses for shareholders and subordinated debt holders to minimise state aid in line with EU directives.

[Reuters]

ekathimerini.com , Friday March 28, 2014 (09:40)  
Investors waiting for Mondays Eurogroup
Germans holiday romance with Greece thrives despite political wrangling
Govt to auction 1 bln euros of 3-month T-bills on March 11
Germany: Greece could get money early if reforms come sooner
Greek ultra-right lawmaker on trial over TV talk show slap
A lawmaker from a Nazi-inspired Greek party, who achieved notoriety for assaulting two female left-wing colleagues during a live TV talk show, has gone on trial over the incident. An Athens ...
Crime boss Vlastos gets another 26.5 years for apartment bomb
Convicted crime boss Panayiotis Vlastos was given an additional 26.5-year prison sentence on Friday after a court found him guilty of arranging for a bomb to be placed outside an apartment b...
Inside News
BASKETBALL
Barcelona beats Panathinaikos once more
For the fourth time this season Panathinaikos failed to beat Barcelona, this time in Athens, losing 81-77 on Thursday and denting its chances for a privileged top-two finish in its Euroleagu...
SOCCER
Iraklis, Apollon and Xanthi in Cup semis
The prospect of a second-division team reaching the Greek Cup final has grown considerably after two out of the three teams that made the semifinals this week come from the Football League. ...
Inside Sports
COMMENTARY
PISA, Schengen, mediocrity and isolation
Greeces most serious problem is not the economic and political crisis, though it did contribute greatly to it. At the root of our evil lies our great isolation, not only from our partners i...
EDITORIAL
New blood, fresh ideas
New Democracy needs new blood and fresh ideas. Former Prime Minister and conservative chief Antonis Samaras should be credited with keeping Greece on its feet and he is one of the very few p...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Investors waiting for Mondays Eurogroup
2. Greek ultra-right lawmaker on trial over TV talk show slap
3. Crime boss Vlastos gets another 26.5 years for apartment bomb
4. ECB has rope round our neck, says Greek PM Tsipras
5. Germans holiday romance with Greece thrives despite political wrangling
6. Greek loan payout hinges on review of reforms, EU official says
more news
Today
This Week
1. BoG chief Stournaras briefs PM Tsipras on ECB's decisions on Greece [Update]
2. Cash-strapped Greece repays first part of IMF loan due in March
3. Greek and German bruisers limber up for 'rumble in the eurozone'
4. Greece must repay loans in full, bailout fund head says
5. Greek reforms list cites tackling evasion, fiscal savings, source says
6. Greece sends new letter with details on reforms, sources in Brussels say
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. The Greek tax drama
3. SYRIZA feeling the pain
4. Varoufakis to make six reform proposals at Monday's Eurogroup
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.