National Bank announces 4.7 – bln euro credit line from int’l banks

National Bank of Greece on Tuesday announced that it was offered repo lines worth 4.7 billion euros from eight international banks with state securities as guarantee, following the successful completion of a share capital increase plan, worth 1.8 billion euros.

The repos have a duration of up to 12 months with very competitive terms, based on current market conditions.

The bank said, in a statement, that this development was a significant step in the Greek banking system’s effort to gradually regain access to international capital markets, such benefiting the Greek economy in general.

National Bank will continue its efforts to expanding its funding sources from international markets. Apostolos Tamvakakis, the bank’s chief executive, recently said that the bank’s successful share capital increase plan would result to the opening up the interbank market by the end of the year.

Greek interbank market almost froze this year amid a fiscal and credit crisis in the country.

Banking officials said the opening of credit lines between banks would allow the domestic banking system to gradually offer much-needed liquidity in domestic markets.

FinMin on Greek banking system

Finance Minister George Papaconstantinou termed an announcement by the National Bank that it now possesses approved financing lines amounting to 4.7 billion euros from international banks with Hellenic state bonds as a guarantee, “an extremely important step for the Greek banking system’s reacquisition of access to international capital markets.”

Also according to the minister’s statement, “the Greek banking system is getting stronger every day, so that it will be able to continue to provide the necessary liquidity for the development of the Greek economy.”