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Bucharest
March 2, 2021
BUSINESS

Greece’s Eurobank opts for full state recapitalization

Eurobank, one of the four biggest Greek lenders and which controls Bancpost Romania, said it would recommend to shareholders a fully state-backed recapitalisation, abandoning efforts to attract private funds, ekathimerini.com informs. “The board decided to propose to the forthcoming general meeting on April 30 that the share capital increase of EUR 5.8 billion (USD 7.6 billion) be fully subscribed by the (Hellenic) financial stability fund, leading to the immediate and full recapitalisation of the bank,” the bank said in a statement to the Athens stock exchange. “As such, Eurobank will become the first fully recapitalised systemic bank, as early as next week,” it said.

The finance ministry has said that the recapitalisation process must be completed by the end of April, at which point the four main banks could continue to acquire smaller Greek lenders if they wished to.

 

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