Euro Crisis

No Nationalization for Second-Largest Greek Bank

Piraeus Bank raised the funds to escape state control


Greece's Piraeus Bank has said a recapitalization scheme has been agreed among shareholders. If fully implemented, it would ensure the lender's solvency and prevent it from being nationalized.

Piraeus Bank of Greece reported on Tuesday that its shareholders had approved a recapitalization deal with a view to safeguarding the financial institution's solvency.

The second-biggest lender in the southern European nation said it was confident it would raise enough money through private sources to avoid being nationalized. It added the adopted plan was worth a total of 7.33 billion euros ($9.56 billion) in shares for private investors.

Under the terms of the country's bailout by international lenders, Greek banks have to raise 10 percent of their total recapitalization needs privately or accept coming under state control.