Friday, May 29, 2015Friday, May 29, 2015

EU, IMF resisting Greek move to create 'too big to fail' bank

Published on Mar 31, 2013 12:29 AM

ATHENS (REUTERS) - Greece's international lenders have asked Athens to halt the merger of National Bank (NBG) with Eurobank, worried that the resulting lender would be too big for the state to deal with, daily Kathimerini reported on Saturday.

The paper said the European Union, European Central Bank and International Monetary Fund troika raised issues over the size of the merged entity relative to Greece's gross domestic product (GDP) and the banking sector as a whole.

NBG took over 84.3 per cent of Eurobank last month via a share swop as part of consolidation in Greece's banking industry to cope with fallout from the debt crisis and a deep recession. The two banks have already initiated merger procedures.

"NBG is going ahead with the legal merger process to absorb Eurobank, which has been approved by Greek and European authorities. Our goal is to complete the process by June," an NBG official told Reuters, declining to comment on the report.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!