Greek bank avoids nationalisation

Greece’s largest bank, the National Bank of Greece, has said it has succeeded in raising enough capital to avoid being nationalised, the second Greek bank to meet that target.

The debt-stifled country’s banks are being bailed out by a €50bn national rescue fund set up with international bailout cash.

To avoid nationalisation they must raise a 10th of their capital needs from private investors. The remaining sum will be provided by the rescue fund.

In a statement today, NBG said it has raised more than that minimum. It said it would provide further details tomorrow. Its total recapitalisation plan is worth €9.76bn.

Of Greece’s four main lenders, Alpha Bank has avoided nationalisation while Eurobank failed to do so. Piraeus Bank’s recapitalisation is under way.