Greece to sell Postbank and Proton in July

20 May 2013

The bank rescue fund in Greece will aim to sell Hellenic Postbank and Proton by the middle of July as big banks continue to absorb smaller lenders, according to an inspection review by foreign lenders.

This is part of the plans to revive the banking system in Greece, which has suffered as a result of the country's economic demise.

Greece is recapitalising its four biggest banks, while winding down others deemed non-viable in order to improve the sector's capacity to fund the economy out of a deep recession.

Small lenders Hellenic Postbank and Proton are now fully owned by the Hellenic Financial Stability Fund, a state capital backstop funded with 50 billion euros from the country's bailout package.

The recapitalisation of Greece's four core banks - National, Alpha, Piraeus and Eurobank - is expected to be wrapped up by June 14. They need €27.5 billion ($35.3 billion) to plug the gap and need to raise at least ten per cent from private investors via share offerings to retain control.

By Asim Shah

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