Greece recently reached a deal with creditors that enabled the release of $12bn in bailout funds, $10bn of which would go towards recapitalising the country’s banks. In support of this, the EBRD will invest in Greece’s Alpha Bank (€65m), Eurobank (€65m), National Bank of Greece (€50m) and Piraeus Bank (€70m).
Nick Tesseyman, EBRD managing director for financial institutions, said: “The recapitalisation of the Greek banks is an essential step towards the recovery of the country’s economy.
“With our involvement we are demonstrating our commitment to contributing to this process and we will play an active role as a shareholder so that the four banks can provide the real economy with finance again.”
The goal of recapitalisation is to strengthen the capital base of the four banks and facilitate their transfer into private ownership.
It is seen as critical for the stabilisation and restructuring of Greece’s banking sector and aims to restore depositor and investor confidence, re-establish credit flows and re-open access to finance.
