Greece picks Eurobank to buy Postbank

City A.M. Reporter
GREECE’S bank rescue fund picked Eurobank to buy New Hellenic Postbank as part of consolidation in the sector and to meet a condition for the next tranche of Greece’s bailout, it said after a board meeting on Saturday.

Athens agreed with its Eurozone and International Monetary Fund backers to sell Postbank (TT) and Proton Bank by today as a condition for the release of more funds from the €240bn (£208bn) rescue package keeping Greece afloat.

The sale is the latest move in a consolidation of the battered banking sector that aims to form stronger, well-capitalised banks to fund the economy out of its six-year slump.

The Hellenic Financial Stability Fund (HFSF), the rescue vehicle set up to recapitalise Greece’s major lenders, said it aimed to sign a binding agreement with Eurobank today, without providing further details.

Goldman Sachs was the fund’s adviser on the Postbank sale. Alpha Bank, National Bank and Piraeus Bank’s Geniki unit had also bid to acquire TT.