ATHENS – Greece has selected JPMorgan Chase & Co. to lead the sale of a 10% stake in National Bank of Greece (NBG), according to a report from Bloomberg. The state’s Hellenic Financial Stability Fund (HFSF), which was established during Greece’s bailout programs to support its banks, is expected to launch the sale as early as October. This move is part of a broader strategy to reduce the HFSF’s holdings, which would lower its stake in NBG from 18% to around 8%. Goldman Sachs and Morgan Stanley are also expected to play roles in the transaction, according to Bloomberg.

This follows a successful sale last November, when the HFSF raised €1.06 billion by selling a 22% stake in NBG. Since then, the bank’s shares have risen, placing the state in a favorable position for this upcoming sale. Over the past year, the government has moved swiftly to reduce its holdings in Greece’s banks, having already divested from Eurobank, Alpha Bank, and Piraeus Bank, with plans to decrease its stake in Attica Bank as well.

Greece’s banking sector has been on a path to recovery following the country’s decade-long debt crisis. According to Bloomberg, the recapitalization of lenders during the bailout programs laid the groundwork for the gradual return to normal operations, with 2024 marking the first time since 2008 that Greek banks were able to make payouts to shareholders.