Alexa

Greece's NBG sells Turkish unit to Qatar National Bank

National Bank of Greece sells its Turkish Finansbank unit to QNB for 2.75 billion euros

Greece's NBG sells Turkish unit to Qatar National Bank

ATHENS, Greece (AP) -- National Bank of Greece says it has agreed to sell its Turkish Finansbank unit to Qatar National Bank for 2.75 billion euros ($3 billion).

An NBG statement says the transaction will boost its liquidity by a total of about 3.5 billion euros, as once it is completed QNB will provide an extra 910 million euros to cover a Finansbank debt to the Greek lender.

NBG shares on the Athens stock market were trading 9 percent up after Tuesday's announcement, at 0.34 euros.

NBG said funds raised will be used to repay state aid worth about 2 billion euros, cut financing requirements and reduce exposure to emergency central bank liquidity.

Greece's banks have been forced to drastically boost their capitalization as a result of the country's acute financial crisis.