Greek Eurobank, Bulgaria's Postbank Owner, Sells Turkey Unit
EFG Eurobank, one of Greece's major banks with Bulgarian subsidiaries, announced it is about to sell its 70% stake in Turkish unit Tekfen to Kuwait's Burgan Bank.
"EFG Eurobank announced that it is in advanced discussions with Burgan Bank from Kuwait to sell its full participation in Eurobank Tekfen," the Greek lender said in a bourse filing.
The terms of the transaction would be announced once a binding agreement is signed, Eurobank added.
Eurobank EFG is among the five Greek banks on the Bulgarian banking services market. It owns Postbank Bulgaria.
Greek banks hold nearly a 30% of the Bulgarian banking market, a 20% share of the bank loans and one-third of all deposits.
Some of the biggest lenders in Bulgaria are managed by Italy's UniCredit, Greece's National Bank of Greece, Hungary's OTP and Austria's Raiffeisen.
Other Greek banks present in Bulgaria include EFG Eurobank, Piraeus, Emporiki and Alpha Bank.
Experts have warned that Bulgaria, the European Union member boasting one of the the bloc's smallest budget deficit, risks seeing its banks sucked under by the fiscal sins of neighboring Greece.
Bulgaria's central bank and finance minister however have repeatedly tried to assuage fears over funds outflow from Greek bank subsidiaries in the country to headquarters in Greece, saying this is part of the free movement of capital.
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