ECONOMY

HFSF OKs sale of Finansbank stake

The Hellenic Financial Stability Fund (HFSF) on Wednesday approved by a large majority the plans of National Bank’s administration regarding its share capital increase and the disposal of a stake in Turkish subsidiary Finansbank.

After the main shareholders’ approval, National will now immediately proceed to the submission of the relevant requests to the Turkish capital market commission.

National’s plan provides for a share capital increase through the sale of new shares corresponding to a maximum of 20 percent of the share capital, while a part of the National-held shares in Finansbank will be sold through a public offering to a maximum stake of 6.9 percent. This move will strengthen Finansbank while National will bolster its capital base.

Some of the HFSF board members put pressure on National’s management to proceed to the sale of the Greek lender’s entire stake in the Turkish bank, believing that this was the only way for National to boost its capital base efficiently and be able to focus on the major challenges of the domestic market. However, Alexandros Tourkolias, the outgoing chief executive officer of National, was opposed to such a plan.