Greek bank avoids nationalisation


Greek National Bank

Greece's largest bank, the National Bank of Greece, said it has succeeded in raising enough capital to avoid being nationalised, becoming the second Greek bank to meet that target.

The debt-stifled country's banks are being bailed out by a 50 billion euro (£42.5 billion) national rescue fund set up with international bailout cash.

To avoid nationalisation they must raise a 10th of their capital needs from private investors. The remaining sum will be provided by the rescue fund.

In a statement, NBG said it has raised more than that minimum. It said it would provide further details on Friday. Its total recapitalisation plan is worth 9.76 billion euro (£8.3 billion).
Of Greece's four main lenders, Alpha Bank has avoided nationalisation while Eurobank failed to do so. Piraeus Bank's recapitalisation is under way.

© 2013 Press Association