Greece is on track to complete the re-privatization of its banks by early October, with the sale of its final stake in National Bank, as reported by Reuters. This move signals a positive turnaround for the Greek banking sector, which had to be bailed out during a severe debt crisis in the past. The sale also signifies the end of the bailout fund, HFSF, which was created in 2010 to safeguard Greece’s major banks and prevent financial contagion in Europe. With the HFSF still holding 18.4% of National Bank, plans are in place to sell 10-13% of this stake and transfer the rest to Greece’s sovereign wealth fund.
The divestment started last year, with the fund selling off its stakes in Eurobank, Alpha Bank, and Piraeus Bank. The upcoming sale of NBG shares is expected to be managed through a book-building process and public offering, showcasing Greece’s economic recovery to investors. With JP Morgan as the appointed advisor, the re-privatization of Greek banks is a significant step towards financial stability for the country.