EFG Eurobank Greece plans to sell Turkish unit

Greece's second-largest lender EFG Eurobank is in initial talks to sell a majority stake in its Turkish unit Eurobank Tekfen as it seeks to safeguard its balance sheet against debt loses.
If successful, the deal will be EFG's second divestment outside Greece this year after the sale of a majority stake in its Polish operation Polbank to Austria's Raiffeisen Bank in February for 490 mln euros ($698 mln).
Greek banks, hit by the country's sovereign debt crisis, have been boosting their capital base to cope with a protracted recession at home that has led to a rise in non-performing loans.
"In current conditions, the possible sale of a majority stake in the Turkish bank will allow a reallocation of funds to boost EFG's activities in countries where it has a significant presence, while at the same time strengthening its liquidity and capital base," the bank said in a bourse filing on Thursday.
Eurobank Tekfen Chairman Mehmet Erten told Reuters in Istanbul that Eurobank EFG had funded the Turkish unit to the tune of 2 bln euros, but was now under pressure to keep resources in Greece to help meet the country's economic crisis.
The group bought 70% of Tekfenbank in 2007. The Turkish bank has doubled its loan portfolio since to 1.4 bln euros and runs a network of 57 branches.
Erten said Eurobank EFG might have held talks with potential buyers among banks from Europe and the Gulf.
He said the Turkish partner Tekfen would like to retain its 30% stake in any new partnership structure.
Eurobank has operations in Bulgaria, Romania, Serbia, Cyprus, Albania and Ukraine. The group, with assets of 83.2 bln euros, employs 22,500 people and has a network of 1,600 branches.
National Bank, Greece's biggest lender, plans to sell 20% of its Turkish subsidiary Finansbank as part of capital-boosting moves.