Eurobank Needs 2.86B Euro Capital Raise

A man comes out of an Eurobank branch in central AthensDespite being largely recapitalized by the government, Greece’s Eurobank said it needs another 2.86 billion euros ($4 billion) to bolster its reserves.

Greek banks have already gotten 41 billion euros ($56.9 billion) from the state, and will need at least another 6.4 billion ($8.88 billion) although the country’s international lenders said it could be as high as 20 billion euros ($27.76 billion).

“The general meeting approved…the increase of the share capital of the bank by up to 2.864 billion euros,” the bank said in a statement on April 12, EU Business reported.

Up to 9.54 billion in new shares will be issued and according to reports, the capital hike is expected to be completed by May.

The offer price per share cannot be lower than 0.30 euros, the bank said. Shares in the bank closed down 4.2 percent on April 11 at 0.43 euros.

Greek banks were put into trouble when a previous government imposed 74 percent losses on investors and bondholders.

Two other top banks — Piraeus and Alpha — have respectively raised 1.75 billion and 1.2 billion euros.

The board of National Bank is expected to convene next week to discuss a two-billion-euro capital increase in May, reports said.

Eurobank was unable to attract enough private funds and had to go to the state for a funds injection.

Greek banks are also under the weight of bad loans that have hit as high as 42 percent in some categories because austerity measures imposed by the government on the orders of international lenders have left customers unable to pay what they owe.