National secures repos totaling 4.7 billion euros

National Bank of Greece announced yesterday it has established repo lines totaling 4.7 billion euros with foreign lenders, guaranteed by Greek state bonds. The move is seen as an illustration of improved access by Greek lenders to the wholesale funding market. Finance Minister Giorgos Papaconstantinou commented on the news saying, ‘This is a significant step for Greece’s banking system in its efforts to regain access to international funding markets so as to provide the cash flow required for the benefit of the economy.’ The repos, with maturities of up to 12 months, will further improve the liquidity of the country’s biggest bank following its successful rights issue for 1.8 billion euros, which strengthened its capital. National further expects another billion from the planned sale of a 20 percent stake in its Turkish subsidiary, Finansbank. Also yesterday, Greece’s second-biggest lender, Eurobank EFG, announced repo lines totaling 4 billion euros.