National Bank of Greece to receive 2.71 billion euros from bailout

Brussels (dpa) - The National Bank of Greece, one of the country‘s largest lenders, is to be shored up with 2.71 billion euros (2.89 billion dollars) from Greece‘s rescue fund, the European Commission said Friday.Athens was granted a bailout of up to 86 billion euros in August - the country‘s third rescue package in five years. Of this, 10 billion euros were set aside to recapitalize the ailing Greek banking sector.Friday‘s announcement made clear that just more than half of this amount will be required to prop up the country‘s four largest lenders - Piraeus Bank, Alpha Bank, Eurobank and the National Bank of Greece.Their combined capital needs had been put at 14.4 billion euros in an assessment by the eurozone‘s bank supervisor on October 31, but the lenders have done better than expected in raising private investments.Alpha Bank and Eurobank covered all their capital needs in this way while Piraeus Bank needed 2.72 billion euros in bailout funds."With the completion of the recapitalization of Greece‘s four systemic banks and the very significant private sector participation, a further element of uncertainty has been removed," EU Economy Commissioner Pierre Moscovici said."This development is a positive step towards securing a sustainable return of confidence in Greece," he said while welcoming the fact that "the financing needs for Greece‘s largest banks will be well below the ceiling agreed in August."The commission, the European Union‘s executive body, also approved plans to restructure the National Bank of Greece after finding it is not in breach of EU state aid rules. It has also given a green light for the country‘s three other largest lenders to reform their business."The banks are now on a clear path towards long-term viability," EU Competition Commissioner Margrethe Vestager said. "They can refocus on lending to Greek businesses and continue supporting the recovery of the Greek economy."