Ethniki will hold its general assembly on Monday, while Eurobank will hold its own on Tuesday, concluding the procedures for capital increases by the four systemic banks.
Ethniki’s board of directors decided to pursue a 12% private investment, rather than the 10% required for the bank to avoid acquisition by the FSF. This translates in 950 million euros in private investments. Eurobank decided last week to cover the 5.8 billion capital increase entirely from the Financial Stability Fund. Alpha Bank and Piraeos Bank have already made the relevant decisions.
The next step for the recapitalization of the banks involves detailing the terms of the capital increases and submitting them to the Capital Market Commission. The time schedule for the capital increases will be relatively sort, not lasting more than two weeks, with Alpha Bank beginning the procedures first, followed by Piraeos and Ethniki.
The value of new shares will be at least 50% lower than the mean average of the 50 stock market sessions that preceded the board meeting when the terms are defined. By the end of June the capital increases will be complete and the banks fully recapitalized.
Senior bank executives state that the completion of the recapitalization procedure will give the markets the necessary cash flow, which will in turn help revitalize the real economy.
