It appears that NBG are getting their proverbial ducks in a row to weather this storm. The biggest problem is the timing of the sale of the Finansbank subsidiary. The bank has said that the plan to be fully recapitalized by December 17th. They have also said that it is unrealistic that Finansbank will be sold before the end of the year.
If you read their recapitalization plan it is a plan to obtain all of the needed funds, not taking into account the sale. This likely means short term major dilution and bond swaps for equity. This is bad for the next few months.
However, if they had put the Finansbank sale into the plan they would have been under duress to sell it for a much lower price as they are facing a mandatory January 1st recapitalization deadline. They now will have the time to find the right buyer at the right price and re-pay convertible bonds used in the December 17th plan.
My guess is that this 'leap of faith' is not gaining much traction and they are having a hard time selling the convertible bonds as insiders do not trust they can pull this off.
So far all they have offered is words and promises. Until we see hard numbers the stock will continue to sink. Today is supposed to be the 'extraordinary shareholder meeting'. Let's hope something concrete and positive comes out of it.
Again, this is just one shareholders opinion.
Quoting an actual Reuters story does not make one desperate or a weirdo. It is a shame that Yahoo no longer lets you post links to articles but that is exactly what it said.
Greece reached an agreement with its lenders on financial reforms early on Tuesday, its finance minister said, removing a major obstacle holding up fresh bailout loans for the cash-starved country.
Tsakalotos said the deal meant Greece's parliament could now ratify the set of reforms to law, and that deputy euro zone finance ministers, known as the Euro Working Group, would on Friday endorse the deal.
That would allow a two billion euros (US$2.15 billion) aid disbursement and about 10 billion in recapitalization aid to the country's four main banks, he said.
It is on Edgar Online. Still a drop in the bucket when the baseline was 4,482 million.
But it is a start. And they quote good third quarter results as a factor in scoring the cash...
Greece and its eurozone creditors have reached an agreement on many issues in the reform programme that Athens is implementing in return for loans, the head of euro zone finance ministers Jeroen Dijsselbloem said in a statement on Sunday.
Greece needs a positive review of its reform progress from the euro zone to get the next, 2 billion euro tranche of loans as well as up to 10 billion euros for the recapitalisation of its banks.
But talks, which should have been completed by the middle of October, have stalled because of differences over details of a foreclosures law.
"I welcome that good progress has been made between the Greek authorities and the institutions in the discussions on the measures included in the first set of milestones and on the financial sector measures that are essential for a successful recapitalisation process," Dijsselbloem said.
"Agreement has been reached on many issues," he said.
He said deputy euro zone finance ministers, called the Euro Working Group (EWG) would meet on Tuesday to take stock of the situation and decide if a disbursement is possible.
The European Bank for Reconstruction and Development is set to buy up to 250 million euros of equity stakes of Greece's four biggest banks, a person with knowledge of the plans told Reuters.
The lenders are Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank that are all at least part owned by Greece's state-backed bank rescue fund.
"The Bank (EBRD) is prepared to invest in all of Greece's four big lenders," the person said on Thursday, adding that it would be able to spend up to 80 million euros per bank to a maximum of 250 million euros.
The investments will be the EBRD's first in Greece after the bank decided to expand lending to the thrice-bailed-out euro zone country early this year.
It is part of efforts to shore up Greek banks after European Central Bank Stress tests last month showed the four lenders the EBRD plans to take stakes in needed #$%$14.4 billion in additional capital between them to be able weather a major downturn.
Eurobank (EURBr.AT), which is roughly one-third owned by Greece's HFSF bank rescue fund and is the country's third largest lender, said earlier it would get up to 80 million euros from the EBRD as part of its 2.12 billion cash raising plans.
Peter Sanfey, the EBRD's then Acting Director of Country Strategy and Policy, told Reuters in July that as well as bank stakes it was also eyeing areas like logistics, agriculture and tourism for potential investment.
Bough in this afternoon and then the bottom fell out again. The company had good numbers. It seemed like an over reaction to me. Maybe Monday will bring some stability...