Eurobank Ergasias SA (EUROB), the Greek bank controlled by the country’s recapitalization fund, will probably need to sell shares in the first quarter of 2014 to cover a shortfall in capital, the fund’s chief said.
The lender may have to sell stock at a lower price than the recapitalization fund paid when it injected cash into Eurobank in June, Anastasia Sakellariou, chief executive officer of the Hellenic Financial Stability Fund, told journalists in Athens today. She didn’t say how much capital the bank needs.
The new capital requirement stems from a BlackRock Inc. review of Eurobank’s loan portfolio, she said. The stability fund spent 38.9 billion euros ($53.6 billion) in June revamping the country’s banking system.
For the recapitalization of Greece’s four systemic banks -- National Bank of Greece SA, Alpha Bank AE, Piraeus Bank SA and Eurobank -- the fund spent 25.5 billion euros. Only Eurobank failed to meet a requirement to raise 10 percent of the capital needed from private investors. As a result, management of the lender passed to the HFSF.
Eurobank rose 1.2 percent to 69.3 cents in Athens trading, and has declined 89 percent this year.
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