Greece’s rescue fund Hellenic Financial Stability Fund (HFSF) intends to divest Hellenic Postbank SA (ATH:TT) and Proton Bank SA by the middle of July, Reuters said, citing an inspection review by the European Union (EU) and the International Monetary Fund (IMF).
The disposal is part of the ongoing restructuring of Greece’s banking sector, which was launched following a severe six-year economic recession in the country. HFSF received an aid package of EUR50bn (USD64.2bn) from the EU and IMF to carry out the process, which includes the recapitalisation of Greece’s four big banks and the gradual closure of others.
According to the review, the Greek authorities are due to work out a strategy by mid-July to privatise HFSF-owned banks and consolidate the banking sector. HFSF is expected to have enough funds to perform stress tests of the sector by the end of this year.
Greece’s top banks National Bank of Greece SA (NYSE:NBG), EFG Eurobank Ergasias SA, Alpha Bank SA and Piraeus Bank SA are seen to complete their recapitalisation by 14 June. HFSF will provide most of the needed EUR27.5bn for the restoration of the lenders’ capital bases.