Greece is set to sell a 10% stake in the National Bank of Greece, marking a significant milestone in the country’s ongoing recovery from the debt crisis that necessitated state bailouts over a decade ago. The move, announced by Greece’s bank bailout fund, the Hellenic Financial Stability Fund (HFSF), signals the conclusion of the privatization process for Greek lenders that began following the financial turmoil of 2009.
The sale price is expected to range between €7.30 and €7.95 per share, potentially generating up to €727.2 million for the Greek government. The books for the sale are scheduled to close on October 2, 2024.
While this transaction represents a pause in the government’s withdrawal from the banking sector, the state will retain an 8.4% stake in the National Bank of Greece. This retention follows a series of successful exits from other major banks, including Eurobank, Alpha Bank, and Piraeus, indicating a broader trend of recovery in Greece’s financial landscape.
The decision to sell comes on the heels of a significant policy shift by the European Central Bank (ECB), which recently allowed Greek banks to distribute annual dividends to shareholders for the first time since the financial crisis in 2008. This development is seen as a vote of confidence in the stability of the Greek banking sector.
According to the European Commission, the Greek economy is projected to grow by 2.3% in 2025, surpassing the average growth rate expected for the eurozone. This positive outlook reinforces the notion that Greece is on a path to financial stability and growth after years of austerity and economic challenges.
The privatization process, which began as a necessity during the debt crisis, has now evolved into a sign of resilience and recovery, with the government gradually exiting its stakes in financial institutions. This latest sale is a testament to the improving health of the Greek banking sector and the overall economy.
As Greece continues to navigate its post-crisis recovery, the successful sale of the National Bank stake could pave the way for further investments and economic growth in the years to come.
