In a statement, the Bank of Greece has suspended the expected merger between the National Bank of Greece and EFG Eurobank. This suspension is based on the recapitalization requirements of Greek banks that are ongoing until the end of April 2013.
The Bank of Greece said that the 'four systemic banks' would need to complete all their recapitalizations as well as seek shareholder approvals for the move. The banks, according to the statement would need to act separately.
According to a finance ministry official, who spoke on condition of anonymity, said that both NBG and Eurobank have advised the Bank of Greece that they are unable to recapitalize on their own. Thus their plan to merge was submitted as a solution to the recapitalization requirements.
The suspension order was upon the advice of the Hellenic Financial Stability Fund, who would review the situation and determine if the banks would be allowed to merge.
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