National Bank to sell Turkish Finansbank

November 3, 2015
Written by E.Tsiliopoulos

National Bank of Greece has announced its intention to sell all the shares held in Turkish Finansbank, a process which is subject to approval of the competent supervisory authorities.

Reportedly, the price is estimated at 3.2 billion euros, the bank saves around two billion euros from the Risk-Weighted Asset (RWA).

The decision to sell 100% of the Turkish subsidiary reduces the capital needs of the National Bank, thus possibly raising capital needs to below two billion euros.

According to the baseline scenario of stress tests, NBG needs amounted to 1.576 bn. euros.

According to the announcement of the Bank, the goal is to include the proceeds from the sale of Finansbank in capital plans that will be submitted on Friday. That is, the amount the bank will receive from the sale will be removed from the account of the capital increase.

This, however, does not exempt the NBG from the requirement of a capital increase, which will take place normally until the end of the year, however, it will reduce the rate of increase.

Reportedly, the binding offers are not yet in the hands of the administration and are expected at the end of November.

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