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GreekReporter.comCanadaFairfax Eyes Bank Of Greece Stake

Fairfax Eyes Bank Of Greece Stake

Fairfax HoldingsGreece΄s biggest lender, National Bank (NBG), said that Canadian investment fund Fairfax Holdings was interested in acquiring a stake in it by taking part in a planned recapitalization, Reuters reported.

NBG has recently taken over its former biggest rival, Eurobank. Greece΄s central bank has estimated the two lenders΄ combined capital shortfall at almost 16 billion euros, some $20.7 billion.

Under the terms of cash-strapped Greece΄s international bailout, its top four lenders must issue new shares by the end of April to replenish their capital after the losses they suffered in the debt crisis from bad loans and losses imposed by the government on Greek bondholders.

The Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) said it is going to set aside 27.5 billion euros, ($37 billion) from Greek bailout funds to inject into ailing Greek banks but private investors must buy at least 10 percent of them or the lenders will be nationalized.

NBG said in a bourse filing that Fairfax was among other investors who had expressed an interest, without giving details. Fairfax is controlled by investment guru Prem Watsa, known as the Warren Buffett of Canada, a nod to the noted American entrepreneur and capitalist. Asked by Reuters to comment on NBG΄s statement, Fairfax Vice President for Operations Paul Rivett said the company did not comment on specific investments but that it did participate in recapitalizations and was interested in Europe.

“We΄ve demonstrated that we will participate in recapitalization, we΄ve done that with the Bank of Ireland, which has turned out to be a tremendously successful investment with a great bank,” Rivett said .

Since taking over Fairfax in 1985, Watsa has built a reputation as a shrewd investor through moves such as betting against the U.S. housing market in the last decade and reaping huge profits when the market collapsed. He invested last year in beleaguered smartphone maker Blackberry and is now its largest shareholder, with a 9.9 percent stake.

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