Qatar investment fund Qatar Investment Authority (QIA) is negotiating to acquire a strategic share of the National Bank of Greece (NBG) – the largest commercial bank in Greece and the owner of the Bulgarian United Bulgarian Bank (UBB), it is clear from the information to Financial Times. Familiar with the negotiations said that the state investment fund QIA, through its subsidiary Qatar Holding, will acquire between 5% and 7% of NBG for about 250 million. The deal is part of the investment strategy of the Fund for the purchase of shares below 10% in financial institutions. The acquisition will help restore confidence in the Greek banking system is under serious pressure from the debt crisis in the country, said the publication. Last week, Greek Prime Minister Georgios Papandreou in Athens urged banks to consolidate, stressing that “industry must take strategic decisions to remain competitive. In an interview with Canadian TV Papandreou announced that investment funds interested in acquiring shares in Greek banks. According to sources, the Financial Times the deal is firm Morgan Stanley. QIA owns 4 percent of the Greek Alpha Bank – the third largest bank in Greece – which the Fund acquired through a holding company before the debt crisis.
Earlier this year, Qatar has started negotiations with the Greek government on the project for 2 billion to build a facility for storing liquefied gas plant in western Greece. As an incentive for economic growth Greece is seeking investment in energy projects, tourism and banking sector, while acting as financial reforms agreed with the European Union and the International Monetary Fund against the financial rescue package of 110 billion. NBG and three other major Greek banks sought government help because of liquidity problems after being excluded from the interbank market. Despite expectations of better results branches of Greek banks in southeastern Europe and Turkey’s banking sector in Greece is preparing for more bad times, said the financial issue. NBG In May posted a net profit of 21 million for the first quarter, compared with EUR 317 million for the same period last year.

Tags: finance, financial institutions, institutions, NBG, Qatar, Qatar Investment Authority, QIA, UBB

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