The government is leaning towards zero public participation in the equity capital of banking groups until the coming autumn.

As banking sources indicate conditions are ripe for a definitive end to state involvement in the domestic banking sector, signaling a complete return to normalcy.

Eurobank became the first completely restored private bank, with the repurchase of the state’s stake (1.8%) in October 2023.

Following in early November was Alpha Bank, after its agreement with UniCredit, acquiring 9% of its equity, previously held by the Hellenic Financial System Fund (HFSF).

A few weeks later, the sale of 22% of the National Bank was completed through a placement, which attracted the interest of long-term and high-quality funds, with the sale of the remaining 18% of the National Bank to start in June.

Next in line, at the beginning of March, is Piraeus Bank, with the HFSF likely to dispose of all its shares in the systemic group (27%). It is noted that the alternative involves the sale of a stake of around 20% – 22% and the sale of the remaining 5% – 7% in a second phase, in order to increase the overall price for the state. However, according financial sources, the total withdrawal of the state from Piraeus Bank in one installment has been finalized.

It is also stressed that until the upcoming November U.S. elections, there is substantial opportunity to mark the formal end of the crisis in the banking sector, with the complete return of the system to the private sector.