About

What we do

The Hellenic Financial Stability Fund (HFSF) was founded in July 2010 (under Law 3864/2010) as a private legal entity and does not belong to the public sector. It has administrative and financial autonomy, operates exclusively under the rules of the private economy and is governed by the provisions of the founding law as applicable.

The objective of the HFSF is to contribute to the maintenance of the stability of the Greek banking system, for the sake of public interest. Τhe HFSF shall act in line with the relevant commitments under the Memorandum of Understanding of 15.3.2012, draft of which was ratified by law 4046/2012 (A’ 28) and of the Memorandum of Understanding of 19.8.2015 draft of which is ratified under law 4336/2015 (A’ 94), as they are both updated from time to time.

The HFSF shall comply with the obligations arising from or in connection with the Master Financial Facility Agreement of 15.3.2012, draft of which was ratified by law 4060/2012 (A’ 65), and under the Financial Facility Agreement of 19.8.2015, draft of which has been ratified by law 4336/2015 (A’ 94), and is authorized to proceed to any necessary action in order to fully comply and to give full effect with these obligations.

In pursuing this objective, the HFSF:
  1. Provides capital support to credit institutions according to the provisions of the present Law in compliance with EU state aid rules.
  2. Monitors and assesses how credit institutions, to which capital support is provided by the Fund, comply with their restructuring plans, safeguarding at the same time the business autonomy of the credit institution. The Fund ensures that such credit institutions operate on market terms and that private sector participation in them is enhanced on the basis of transparent procedures and on the EU legislation on state aid.
  3. Exercises its shareholding rights deriving from its participation in the credit institutions to which capital support is provided by the Fund, as these rights are defined in this law and in relationship framework agreements entered into with such credit institutions, according to paragraph 4 of Article 6 of this Law in compliance with the rules of prudent management of the assets of the Fund and in line with the rules of the European Union with respect to State aid and competition.
  4. Disposes in whole or partially, of financial instruments issued by the credit institutions in which it participates, according to the provisions of Article 8.
  5. Provides loan to the Hellenic Deposit and Investment Guarantee Fund (HDIGF) for resolution purposes according to the provisions of article 16.
  6. Facilitates the management of the non-performing loans of the credit institutions.
  7. Enters into relationship framework agreements or amended relationship framework agreements, as provided in paragraph 4 of article 6, with all credit institutions that are or have been beneficiaries of financial assistance by the European Financial Stability Fund (EFSF) and the European Stability Mechanism (ESM) in order to provide for the implementation of its objectives and rights, including special rights as defined in article 10 , as long as the Fund hold shares or other capital instruments or the Fund monitors the restructuring plans of the above said credit institutions.
In the context of the present Law the term “credit institutions”, shall mean credit institutions within the meaning of art 1 par. 1 of Reg. 575/2013, cooperative banks included, which operate lawfully in Greece and are authorized by the competent authority, including their branches operating abroad, as well as subsidiaries of foreign credit institutions operating in Greece.

The Fund shall operate under a comprehensive strategy for the banking sector and the Non-Performing Loans (NPLs) management, which is agreed between the Ministry of Finance, the Bank of Greece and the Fund, as revised from time to time.

The temporary liquidity support provided under law 3723/2008 or as part of the operations of the Eurosystem and the Bank of Greece, shall not fall within the scope of the Fund’s objective. The monitoring and supervision of the actions and decisions of the bodies of the special liquidation of the credit institutions do not fall within the functions of the Fund. The decision making bodies of the Fund shall have no authority with respect to acts or omissions of the bodies accountable for the special liquidation proceedings of credit institutions.

The Fund shall have its registered office in Athens and its duration shall be up to 30 June 2020. By decisions of the Minister of Finance, the duration of the Fund may be extended, if deemed necessary for the fulfilment of its scope.