ECONOMY

Contribution from state to bank recap put at 5.7 bln euros

contribution-from-state-to-bank-recap-put-at-5-7-bln-euros

Without naming names, the government announced on Tuesday that two Greek banks – meaning National and Piraeus – will receive state aid in their recapitalizations, with the sum adding up to 5.7 billion euros.

“According to the latest data, two systemic banks managed to cover all their capital needs from private investors,” government spokeswoman Olga Gerovassili said, meaning Alpha and Eurobank. “The other two will need about 5.7 billion euros from the Hellenic Financial Stability Fund to conclude the process,” she added.

The Capital Market Commission on Tuesday approved National Bank’s bulletin for the sale of up to 300 million euros’ worth of shares to Greek investors. Investors can enter the book next week, from Monday to Wednesday. The process will be open to everyone, without a minimum threshold for bidding, and the sale price will be 0.30 euros.

The country’s four cooperative banks are also proceeding with share capital increases. They are aiming to complete the process by the end of the year and the increases will add up to almost 185 million euros.

Pancretan Cooperative Bank (Pankritia Bank) will perform the biggest increase of the four, adding 130 million euros to its capital. The Hania Cooperative Bank is planning for 23 million euros, the Peloponnese Cooperative for 17.8 million and the Epirus Cooperative for 7 million euros.