Agricultural Bank of Greece plans to sell off its 93.27 percent majority stake in its Romanian subsidiary, reads a statement released by the Greek bank. The International Finance Corporation - IFC - agreed to buy 9.27 percent in the bank by December 15.

"The Agricultural Bank of Greece within the context of a wider privatization program that is taking place in Greece, has decided to dispose through an open public tender to an investor its entire stake of 93.27 percent (which includes a parcel of 9.27 percent that will be acquired from IFC-International Finance Corporation - by  15th December 2011), in the share capital of the Romanian bank ATEbank Romania, ” according to the statement. ATEbank retained UK firm Deloitte for legal services.

The sale of ATE Bank Romania comes at a time when Greek banks are suffering on their home market.

The bank started operations on the Romanian bank market in October 1990 as Mindbank and was the first bank in Romania, after 1989, in which foreign investors participated in the share capital. In 2006, ATEbank acquired a majority stake and proceeded to rename the bank as ATEbank Romania.

The Agricultural Bank of Greece is a commercial bank based in Athens, Greece. The bank was founded in 1929 and until 1990 it was appointed by the Greek state to support the development of the country’s agriculture. Even though its activity area increased, the farming sector remains one of the bank’s major areas of interest.

Alex Camburu, alex.camburu@romania-insider.com

(photo source: Sxc.hu)