The Hellenic Financial Stability Fund (HFSF) seems to be receiving encouraging signals regarding the disinvestment strategy so, after Eurobank, it can also proceed with other banks.
The next bank seems to be the National Bank.
A crucial meeting of the Fund’s board of directors has been scheduled for next Tuesday, while members of the government’s financial staff are supporting the moves that will “free” the banks from the public sector.
Private banks are more attractive and can lead the stock market to higher levels.
But it is not only these factors that push in this direction.
It is clear that the HFSF also receives encouraging signals from other sources, such as Moody’s rating agency.
Moody’s
Eurobank was the first step of the disinvestment strategy and this was a credit-positive event for the banking system and the economy.
The bank will no longer be subject to the Greek Law 3864/2010 and the special rights that the HFSF has, including the obligation to provide consent and monitor the business plans. Therefore, Eurobank became the first domestic systemic bank without any state participation in its share capital.
The bank’s shareholder plurality will improve, thus making it more attractive to private investors. The new funds would support the bank’s growth and ability to provide new loans to the real economy.
