Fairfax-led group gets go-ahead to invest 1.3 billion euro in Eurobank

Greece’s banking system was handed a vote of confidence on April 15 as Eurobank was given the go-ahead for a share capital increase. A group of foreign investors will pump 1.3 billion euro into the Greek bank.

The Hellenic Financial Stability Fund (HFSF) – that owns 95 per cent of Eurobank’s shares – approved the share sale to a group led by Canada’s investment fund, Fairfax, which includes Capital Research and Management, Wilbur Ross, Fidelity, Mackenzie and Brookfield.

Money raised will go towards plugging a capital shortfall of 86 billion euro which emerged from stress tests conducted by the Central Bank of Greece in March 2014.

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(Photo: M van den Dobbelsteen/sxc.hu)