ATHENS, Nov 3 (Reuters) - Greece’s National Bank said on Tuesday the process to sell its Turkish unit Finansbank was at a ‘relatively advanced stage’, but would not be concluded by the end of the year.
“This is already a process undergoing, which is in a relatively advanced stage,” National Bank Chief Executive Leonidas Fragkiadakis told an investors’ conference call.
A health check by the European Central Bank last weekend showed that the four main Greek banks had a 4.4bn under the baseline scenario and 14.4 billion under the adverse scenario.
NBG has a capital shorfall of 4.6bn under the adverse scenario. That need shrinks to 1.576bn under the baseline scenario.
“Capital generation from the intended sale of Finansbank will be deployed to replace the interim state aid in the form of CoCos (contingent convertible bonds), received to cover the residual portion of the adverse scenario that has not been covered by the share increase of the (debt buyback),” Fragkiadakis said. (Reporting by Michele Kambas)