Hellenic Financial Stability Fund
Piraeus Bank has agreed to sell half a billion euros of non-performing corporate loans to an entity affiliated with Davidson Kempner Capital Management as part of efforts to clean up its balance sheet.
Greece's largest lender by assets on Monday said it is selling loans with a gross book value of 507 million euros ($573 million) and has agreed a price of 240 million euros.
Prominent Greek banker Giorgos Michelis, who was appointed as Chairman of the Board of Attica Bank in late March, died on Saturday at the age of 69.
Michelis had many years of banking experience having served as CEO of Bancpost, a subsidiary of Greece's Eurobank in Romania, general manager of Emporiki Bank and executive vice president and chief operating officer at Egnatia Bank.
Morgan Stanley sees that while steps have been taken to drastically reduce Greek banks' bad loans, several obstacles remain in their way. The international bank's report on Monday followed meetings between Morgan Stanley officials and representatives from the country's four systemic banks, as well as from Grivalia, the Bank of Greece and the Hellenic Financial Stability Fund.
Yesterday's meeting between Finance Minister Euclid Tsakalotos and Bank of Greece Governor Yannis Stournaras just two days before the European Commission's report on the Greek economy reveals the government's concern over the problems that lie ahead, the most important of which is the looming problem of non-performing loans (NPLs) that has burdened the banks and the economy in general.