Greece sells 20 percent stake in postal bank

The government raised more than euro 500 million (USD 683 million) from the sale of a 20 percent stake in the Greek Postal Savings Bank as part of its 2007 privatization program, Finance Minister George Alogoskoufis said Tuesday.

With this sale, and euro 1.1 billion (USD 1.5 billion) raised following the sale of a 10.7 percent stake in Hellenic Telecommunications Organization (OTE) last month, the government is close to reaching its euro 1.7 billion (USD 2.32 billion) privatization revenue target for the year.

The privatization revenues will be used to pay down Greece’s huge public debt, estimated at 104 percent of gross domestic product, or more than euro 180 billion (USD 246 billion).

“The successful disposal of the 20 percent of the stake in Greek Postal Savings bank is an important step in the government’s privatization program,” Alogoskoufis said.

Tuesday’s sale lowered the government’s stake in the lender to 45 percent.

Shares of the Greek Postal Savings Bank ended 1.7 percent higher Tuesday at euro 18.30 (USD 25.01) at the Athens Stock Exchange.