National Bank of Greece sells its Turkish Finansbank unit to QNB for 2.75 billion euros

ATHENS, Greece – National Bank of Greece says it has agreed to sell its Turkish Finansbank unit to Qatar National Bank for 2.75 billion euros ($3 billion).

An NBG statement says the transaction will boost its liquidity by a total of about 3.5 billion euros, as once it is completed QNB will provide an extra 910 million euros to cover a Finansbank debt to the Greek lender.

NBG shares on the Athens stock market were trading 9 per cent up after Tuesday’s announcement, at 0.34 euros.

NBG said funds raised will be used to repay state aid worth about 2 billion euros, cut financing requirements and reduce exposure to emergency central bank liquidity.

Greece’s banks have been forced to drastically boost their capitalization as a result of the country’s acute financial crisis.