Greek banks have been given the green light to distribute dividends for the first time since the sector was hit by the financial crisis.
The European Central Bank (ECB) backed payments to shareholders after 16 years.
Greece was one of the European countries most affected by the 2008 financial crisis, which caused the state to intervene to rescue the banks.
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The emergency measure caused a reduction of a quarter of the country’s economy.
Rising unemployment and street protests added to the chaos and almost caused Greece to leave the eurozone.
The National Bank of Greece said yesterday that it plans to distribute £282.7 million to shareholders. Alpha Bank will distribute £103.8 million of 2023 profits: half as a cash dividend and the rest as share buybacks.
Piraeus Bank shareholders will receive £67 million and Eurobank will pay £291 million. Alpha Bank CEO Vassilios Psaltis said it was the “final seal of approval for the bank’s full return to normality since the outbreak of the financial crisis.”
It comes as banks have reduced their default exposure ratios – a measure of lenders’ credit risk – to less than 6 percent from 45 percent in 2016. They have also reduced state ownership and become profitable.
Earlier this year, Greece’s finance minister said the government would complete this year the sale of its outstanding stakes in five banks bailed out during the debt crisis.
The State recently sold its stake in three big banks, raising almost £2bn.
The sale of a 27% stake in Piraeus Bank was oversubscribed eight times.
The final distribution of payments must be approved by the lenders’ shareholder meetings, which are expected to take place in the summer.