The Greek bank Eurobank Ergasias SA would probably need to sell shares during the first quarter of 2014 to cover its capital shortfall, according to a report by Bloomberg.
The bank is controlled by Greece's recapitalization fund, the report said.
Anastasia Sakellariou, CEO of the Hellenic Financial Stability Fund (HFSF), told journalists today that the bank's stock may have to be sold at a lower price. The stock's selling price would be much lower than the recapitalization fund used bail Eurobank.
The new capital requirement stems from a BlackRock Inc. review of Eurobank's loan portfolio, she said. The stability fund spent 38.9 billion euros ($53.6 billion) in June revamping the country's banking system.
There are four Greek banks that received recapitalization. These are the National Bank of Greece Sa, Alpha Bank AE, Piraeus Bank SA and Eurobank. Of the four banks, only Eurobank failed to meet the requirement to raise the capital it needs from private investors. The capital requirement is 10%. This resulted in HFSF shouldering the management of the lender.
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