Greece’s NBG not about to make merger move

National Bank of Greece <NBGr.AT>, the country's top bank, will not make any merger or acquisition move soon, a bank source said on Monday, dismissing a press report that such a step was imminent.

Newspaper Vima reported on Saturday that NBG would move within the next 10 days to seek partners in Greece or abroad, citing sources close to the bank's Chairman Vassilis Rapanos.

"National is not expected to take any merger initiatives within the next 10 days," the executive said. "The reported statements by Rapanos … were never made," he added.

National Bank, the top management of which is appointed by the government, on June 12 denied it was in merger talks with any Greek bank.

Media speculation about bank mergers has proliferated after Piraeus Bank <BOPr.AT>, Greece's fourth-largest, last week offered 701 million euros to buy the government's stakes in state-run lenders ATEBank <AGBr.AT> and Hellenic Postbank <GPSr.AT>

Piraeus's offer came after the government urged lenders to seek alliances to better cope with the debt crisis and resume funding its ailing economy.

Greek banks, which have rapidly expanded in eastern Europe over the past years, are struggling to preserve capital and depend on funding by the European Central Bank to refinance operations.