Greece to Complete Bank Privatisations with October Sale of Final Stake

Greece is set to finalise its post-crisis bank privatisation efforts by early October with the sale of its remaining stake in the National Bank of Greece (NBG), sources told Reuters on Wednesday.

The upcoming sale will conclude a significant chapter for Greece's banking sector, which was severely impacted during the debt crisis that nearly pushed the country out of the eurozone. This crisis led to stringent austerity measures imposed by international lenders in exchange for bailout funds.

Currently, the Hellenic Financial Stability Fund (HFSF), established in 2010 to stabilise Greece's major banks and prevent wider financial contagion, holds an 18.4% stake in NBG. The plan is to sell between 10% and 13% of this stake, with the remainder being transferred to Greece's sovereign wealth fund.

"The exact stake and timing for the sale will be decided next week," one source revealed. The HFSF began reducing its holdings last year after injecting around 50 billion euros to support Greece's top banks during the crisis.

The divestment of HFSF's stakes in Eurobank, Alpha Bank, Piraeus Bank, and part of its NBG stake is viewed as a positive indicator of Greece's economic recovery. However, many Greeks continue to experience the lingering effects of the crisis.

The sale of the NBG stake will be conducted through a book-building process and public offering, with JP Morgan advising on the transaction. If demand is strong, the government may opt to sell the full 13% stake.

(Source: Reuters)

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