Greece wants Emporiki fully funded before sale

Greece's bank support fund has told Greek banks eyeing Credit Agricole's Emporiki unit it will approve a sale only if the struggling Greek lender is fully recapitalised and funded before it is sold, a senior banking source said on Friday.

Credit Agricole has been trying to sell Emporiki to limit its 4.6 billion euro exposure to crisis-hit Greece.

The bailout fund, which has injected 18 billion euros into Greece's four biggest lenders, wants to avoid having to pump capital into Emporiki after it is sold to a Greek lender, the source said.

"The Hellenic Financial Stability Fund has set four eligibility criteria for the sale to go through, mainly the need for Emporiki to be sold recapitalised and fully funded," the banking official, who declined to be named, told Reuters.

The sale has drawn the attention of Greece's three biggest banks. Eurobank and National Bank confirmed their interest in Emporiki this week but have yet to submit offers. Alpha Bank has said it has offered to buy all of Emporiki.

The banks have been told to submit binding bids to the French lender by Aug 8, two Greek banking sources told Reuters on Friday.

Credit Agricole, Eurobank and National Bank were not immediately available for comment when contacted by Reuters.