NBG says TT, Piraeus bank among limited merger options in Greece

The chief executive of Greece's largest lender, National Bank , said in a newspaper interview that Hellenic Postbank (TT Bank) and Piraeus Bank were among the limited merger options in the country.
Troubled by sovereign debt downgrades, deposit outflows and rising loan losses in a deepening recession, Greek banks are exploring tie-ups to bolster their financial strength in a bid to regain access to wholesale funding markets.
"If we talk about a move in the country, the options are limited. Piraeus Bank and Hellenic Postbank are among them," Apostolos Tamvakakis told Sunday Kathimerini newspaper.
NBG tried to take over Alpha Bank earlier in the year, but its offer was turned down. Alpha decided last month to merge with EFG Eurobank instead via a share swap to form the largest lender in southeast Europe.
Asked whether it was possible for NBG to partner with a foreign stategic investor, Tamvakakis said it was unlikely because of prevailing market worries over Greece's sovereign debt crisis.
"I want to be a realist. The possibilities of a foreign investor investing in Greece today … are minor due to the uncertainty over the country," he said.
In August NBG reported a big first-half loss on government debt writedowns and said it would not rush into big strategic moves, even as local rivals seek security in mergers.
Tamvakakis said the lender aimed to avoid resorting to the Financial Stability Fund (FSF).