Today, Tuesday 30 July 2013, the Hellenic Financial Stability Fund (HFSF)
announced its activities report, which covers the period from January to June 2013.
The main points of the report are:
1. The successful completion of the recapitalization of the four systemic
banks (Alpha Bank, National Bank of Greece, Eurobank and Piraeus Bank)
within schedule. The final HFSF contribution to the recapitalization was EFSF
bonds with a nominal value of €24,998 ml, while the total share capital
increase amount for the four banks was €28,595 ml. The participation of the
private sector (exceeding 10%) at three banks and the valuation of the
EFSF’s bonds which were given to the banks at a premium above par
resulted in the lower utilisation of the EFSF resources which have been
committed for the Greek banking sector by €3,597 ml.
2. Signing of the Relationship Framework Agreements (RFAs) between
HFSF and the banks which have received capital support from the Fund. The
Framework Agreement determines the relationship between the banks and
HFSF as well as issues that deal with corporate governance and the
cooperation framework of each bank.
3. Issues per systemic bank
- National Bank of Greece (NBG): Acquisition of the healthy portfolio
of FBB, while the funding gap of the bank under liquidation was
covered by HFSF. - Piraeus Bank: Acquisition of the Cypriot banks’ operations by Piraeus
Bank. HFSF covered the capital needs resulting from this transaction. Also the Fund gave its consent to Piraeus Bank to acquire Millennium
Bank which was capitalized by its parent company BCP. - Alpha Bank: Completion of the acquisition of Emporiki Bank after the
capital injection made by Credit Agricole and subsequently absorption
of Emporiki by Alpha Bank. - Eurobank: Following the conclusion of the bank’s share capital
increase, HFSF became the major shareholder of Eurobank. HFSF
approved the agreement between Eurobank and Fairbax Financial
Holdings under which the latter will cover a capital increase of
Eurobank Properties.
4. Transitory Credit Institutions (TCIs):
- New Hellenic Post Bank (NHPB): HFSF fully covered NHPB’s share
capital and covered the difference between the transferred assets and
liabilities as these were determined by BoG. The Fund, after a
competitive tender process, reached an agreement with Eurobank to
sell NHPB. The sale will be concluded after the necessary regulatory
approvals will be obtained. - New Proton Bank: HFSF, after a competitive tender process, decided
to sell New Proton Bank to Eurobank. HFSF will recapitalize the bank
before the conclusion of the sale.
5. HFSF received on 31/5/2013 from EFSF bonds with a nominal value of €7.2
billion. Thus, HFSF’s capital increased to €49.7 billion.
For more information please refer to the Fund’s website (www.hfsf.odh.gr) and in particular in the
section titled “Activities of the financial stability Fund during the period January – June 2013”.