The second biggest loan company in Greece, Piraeus Bank, got the services of four global investment banks to be its counselors on the EUR7.33 billion or US$9.4 billion share problem, based on the report of Reuters that came from two bankers knowledgeable of the matter. According to one of the bankers, "Goldman, Barclays, Deutsche Bank and Bank of America - Merrill Lynch will be acting as advisers."
The top four banks of Greece which includes Piraeus, is requiring a full amount of EUR27.5 million to resolve their capacity to meet maturing obligations as they reach its due date. This comes as a result of bad loans and losses resulting from the cancellation of sovereign debt. The banks are hoping to recover its interbank activity, to be able to help the economy recovery from its six-year decline. Majority of the finances will be infused by a state bank rescue fund which is the Hellenic Financial Stability Fund (HFSF) and in return shares will be issued. The HFSF is financed with EUR50 billion from the bailout package of the country.
Piraeus is convinced that it will be able to secure EUR733 million for its private investors to steer clear of needing to utilize the rescue fund. The bank will be guaranteed by an underwriting deal.
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