top cx logo
cx logo
Explorearrow down
search icon
Explore
arrow down

Banks rush to sell Greek assets

Crédit Agricole and Société Générale are in talks to get rid of their loss-making Greek subsidiaries

CREDIT Agricole and Société Générale are reported to be hurrying to sell off their loss-making assets in Greece.

The banks both own Greek subsidiaries and are said to be racing to get rid of them to stem a haemorrhage of money – plus potential disaster if Greece leaves the euro zone.

Crédit Agricole is hoping to find a taker for Emporiki in “a few weeks”, its boss, Jean-Paul Chifflet, told Le Monde.

It is estimated to have cost the Crédit Agricole about €10billion since it was bought in 2006 at a time when the Greek economy was flourishing. This is largely responsible for the French bank’s share value having lost two-thirds in three years.

It is in discussion with three Greek banks and says there are still “several possible solutions” as to a final deal.

Société Générale meanwhile is in talks to sell Geniki to the Bank of Piraeus.

Greek financial news site www2euro.day.gr says the deal is expected to include the French bank injecting €350m of capital, but it would keep a 10% stake.

While the problems faced by the two French banks are similar, Crédit Agricole has more at risk. Since 2007 Geniki has suffered losses of €600m – Emporiki, some €7bn. The activity of the two banks is also very different, for example Geniki has loaned about €2bn at present, Emporiki €22bn.

Photo:Steve Swayne

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Income Tax in France 2023 (for 2022 income)*
Featured Help Guide
- Primarily aimed at Britons, covers pensions, rent, ISAs, shares, savings and interest - but also contains significant general information pertinent to readers of other nationalities - Overview of online declarations + step-by-step guide to the French printed forms - Includes updates given automatically after this year's site opened
Get news, views and information from France