ATHENS Jan 2 (Reuters) - Greece's largest lender
National Bank said on Monday it completed a 1 billion
euro ($1.67 billion) capital boost by placing new preferred
shares with the state, strengthening its capital adequacy and
Making use of provisions under a 2008 law which aimed to
help banks with liquidity during the global credit crisis, the
group issued a total of 200 million new preferred shares which
were fully taken up by the government.
Greek lenders are trying to cope with rising bad debts and a
shrinking deposit base as the austerity-hit country struggles
through its fourth straight year of economic contraction, seen
topping 5.5 percent in 2011.
Banks are expected to have to recapitalise after writedowns
resulting from a planned bond swap agreed in October, which
calls for a 50 percent nominal writedown on Greek government
NBG said the capital increase strengthened its capital
adequacy ratios by 1.5 percentage points, bringing its Core Tier
1 ratio to over 11 percent, based on end-September data.
The bank had only tapped 350 million euros under the scheme
out of a total of 1.35 billion it had been allocated.
It said its fully paid share capital now stands at 6.138
billion euros, divided into 965,090,482 common shares with a par
value of 5 euros, 25 million non-voting preferred shares with a
par value of 0.3 euros each and 270 million redeemable,
preferred shares under the liquidity enhancing law of 2008 which
have a par value of 5 euros each.
(Reporting by George Georgiopoulos)