Eurobank buys back its own shares from state fund

Eurobank buys back its own shares from state fund

Eurobank has repurchased a 1.4% stake in itself from state-controlled bank bailout fund HFSF to end the state’s participation in its share capital, the Greek lender said on Monday.

Greece’s largest lender by market capitalization was one of four systemic banks the government took stakes in during Greece’s economic crisis and is the first to end HFSF’s involvement.

It offered 18 euros per share, or €93.7 million, and said it intends to cancel the shares.

“The successful buyback of HFSF’s full participation in Eurobank is a milestone for the bank, the banking system and the Greek economy,” Eurobank CEO Fokion Karavias in a statement.

HFSF injected about €50 billion to recapitalize the four lenders during the country’s decade-long financial crisis.

Senior banking officials have told Reuters that the government next plans to sell a 20% stake in National Bank of Greece, the country’s second largest. [Reuters]

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