European Commission Announces $2.96 State Aid For National Bank of Greece (ADR)(OTCMKTS:NBGGY)
The European Commission has extended additional funding assistance to the tune of $2.96 billion to National Bank of Greece (ADR) (OTCMKTS:NBGGY). The bank is among last one of the four giant Greek banks, which has been asked to counter capital shortfalls.
The European Union’s executive body informed that corrective measures have been implemented to restructure the bank. It assured that the bank’s amended plan would help it to keep the lending flow to the Greek economy intact. $2.96 state aid to the bank will be sourced from both share capital and contingent convertible capital instruments.
The move by the European Union is seen as the conclusion of its efforts to restructure and recapitalise four of the Greek’s four largest banks, which includes Alpha Bank, Eurobank, Piraeus Bank apart from the National Bank of Greece (ADR) (OTCMKTS:NBGGY). The amended restructuring plan of National Bank of Greece includes disposal of noncore assets in the foreign countries along with deeper operational restructuring.
Delisting of ADRs
The restructuring plans of banks come amid the New York Stock Exchange’s decision to delist the American depository receipts (ADR)‘s of National Bank of Greece. The Exchange’s decision is driven by the 91% year-to-date slump in the company’s stock value. Also, the trading in the ADRs has been suspended with immediate effect.
The Exchange stated in its announcement that the stock of National Bank of Greece is no longer in compliance with the NYSE’s Listed Company Manual as its prices have touched an abnormally low level. Further, the bank failed to comply with the trading standards and has been unable to keep its share value to trade above $1.00 price since July’ 2015. At the same time, the bank’s restructuring plan involves heavy dilution and therefore, in view of which, the Exchange decided to delist its shares.
The stock price of National Bank of Greece (ADR) (OTCMKTS:NBGGY) shed nearly70% of its stock value to $0.735 during the last session.
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