Tuesday March 31, 2015 Search
Weather | Athens
14o C
09o 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)  
Bank stocks post huge losses in Q1
Greek deposit outflows said to slow to 3 bln euros
Greece opposes EUs sanctions on Russia, Tsipras tells Tass
Russian firms to bid for Greek oil and gas drilling tender, says energy minister
Trial of suspects in Salamina torture case starts
The trial of four men accused of torturing an Egyptian bakery worker on the island of Salamina in the summer of 2012 is to resume on April 30 after the victim, Waleed Taleb, and several witn...
Turkish seismic vessel leaves Cyprus EEZ
The Turkish research vessel Barbaros, whose presence within Cypruss exclusive economic zone (EEZ)prompted Nicosia to suspend peace talks in October, was on Tuesday reported to be sailing of...
Inside News
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
SOCCER
Three Greek internationals injured in Budapest car crash
Three Greek international soccer players were slightly injured on Monday in a car crash as they travelled by taxi to Budapest airport following Greece's Euro 2016 qualifying goalless draw ag...
Inside Sports
COMMENTARY
Amateur antics or overstepping the mark?
There are 149 plus two reasons why those who have been watching SYRIZAs progress since its start cannot and never will be able to stomach the leftist partys coalition with Independent Gree...
EDITORIAL
A pointless debate
Mondays parliamentary debate between the countrys political leaders left a lot to be desired. There was no information whatsoever about the coalition governments proposed reforms or the p...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Bank stocks post huge losses in Q1
2. Trial of suspects in Salamina torture case starts
3. Turkish seismic vessel leaves Cyprus EEZ
4. Mother of Conspiracy convict released, girlfriend remains in custody
5. Greek museums and sites to stay open til 7 p.m.
6. Vatopedi trial adjourned for second time
more news
Today
This Week
1. Amateur antics or overstepping the mark?
2. Parliamentary speaker prompts ND walkout, anger from PASOK, Potami
3. Greece, EU/IMF lenders end round of technical talks without deal
4. Investment guru Mark Mobius rules out Grexit, advises sell-offs
5. A pointless debate
6. Greek government proposes measures worth 3.7 bln
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.