- The Eurobank executive
Greece government agreed with its Eurozone and International Monetary Fund backers to sell two nation's banks- Postbank and Proton Bank by July 15, as a part of the deal to secure more funds from the 240-billion euro rescue package, which keeps Greece afloat. The country has pledged to recapitalize its major lenders to be able to provide stable funding within the economy, hence both banks will be sold to Eurobank, which is the nation's fourth largest lender. Greece's bank rescue vehicle Hellenic Financial Stability Fund currently owns 100% of Postbank and Proton, while also holding 93.6% of the Eurobank shares, after the recapitalization with 5.84 billion euros last month. The deal is the latest move in a consolidation of the struggling banking sectors that is trying to form stronger and well-capitalized banks to help the economy to emerge from its six-year slump.
Last week, the international creditors said they will offer a helping hand for struggling Greece once again, as the nation's government reached a deal with the troika over a staff-reduction plan, which is a key aspect of the country securing funding. The troika had concluded their latest review of the Greek economic programme, citing important progress, referring to reforms implemented in the tax system as well as the recapitalization of Greek banks. Greece will receive another tranche of 6.8 billion euros.
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