Greece's Eurobank shareholders to decide on recap April 30
ATHENS, April 10
ATHENS, April 10 (Reuters) - Greek lender Eurobank's shareholders will meet on April 30 to approve a 5.8 billion euro ($7.6 billion) recapitalisation plan, the bank said in a bourse filing on Wednesday.
The country's four major banks need 27.5 billion euros in fresh funds to restore their solvency ratios to levels required by the country's central bank after incurring losses from a sovereign debt writedown and impaired loans.
Greek banks have been merging to survive a debt crisis that has pushed the country's economy into a six-year slump.
But Eurobank's integration with the country's largest lender National bank (NBG) was suspended this week after the two lenders admitted they were unlikely to raise enough cash from private investors and Greece's international lenders raised doubts over the deal.
The two banks will be recapitalised separately.
NBG will issue new shares and contingent convertible bonds to recapitalise, an official at the bank told Reuters on Tuesday, adding final decisions on the plan were expected on Wednesday when its board reconvenes.
NBG's capital needs have been set by the country's central bank at 9.75 billion euros and Eurobank's at 5.83 billion.
Most of the funds will be provided by state bank support fund, the Hellenic Financial Stability Fund (HFSF), in exchange for new shares or contingent convertible bonds. ($1 = 0.7658 euros) (Reporting by Renee Maltezou; Editing by David Holmes)