Eurobank Resorts to Hellenic Financial Stability Fund for Recap
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Eurobank Ergasias SA, one of Greece’s four systemic banks, abandoned efforts to raise a portion of the funds required to repair its capital from the private sector, meaning control of the bank will pass to the state.
Finding private investors to put up the 10 percent of the Athens-based lender’s 5.8 billion-euro ($7.6 billion) share capital increase is “technically impossible” given the uncertainty over the fate of Eurobank’s planned merger with National Bank of Greece SA, Eurobank said in an e-mailed statement today. The board decided instead to propose raising the full amount from the Hellenic Financial Stability Fund at an April 30 shareholder meeting.