HSBC to advise Greece on financial overhaul

27 August 2010

HSBC is one of three banks chosen by Greece to advise the state on how to restructure its financial system in the wake of the economic volatility it experienced earlier in the year.

The financial services provider has been hired alongside Deutsche Bank and Lazard to work on the country’s strategy of recovery.

Previously the authorities have discussed merging banks and lenders as a way of securing the financial system against any further instability.

According to reports, an offer to buy government shares in ATEbank and Hellenic Postbank from Piraeus Bank is expected to be among the first topics of discussion between the authorities and its newly-appointed advisors.

The latter offered a total of €701 million ($891 million) for the government’s holdings in the financial institutions.

In a statement, which was quoted by Reuters, the Greek financial ministry said: “The government will take any necessary measure to secure the stability of Greece's financial system and promote its strategic restructuring.”

Earlier in the year, governments from across Europe approved a €110 billion bailout package for Greece from the eurozone and International Monetary Foundation.

By Jim Ottewill

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