Mission of the Hellenic Financial Stability Fund (HFSF)

The Hellenic Financial Stability Fund (HFSF) was founded in July 2010 with the objective of contributing to the stability of the Greek banking system for the public interest as well as the effective disposal of shares or other financial instruments held in credit institutions, based on its divestment strategy. Under its founding law (L. 3864/2010) it enjoys administrative and financial autonomy and operates as a private legal entity. Throughout its more than 10-year course which took place during the severe domestic financial crisis, the HFSF has greatly contributed to the rescue and restructuring of the systemic banks acting as a catalyst for stability and transformation and focusing on the banks’ efficiency and effectiveness in the pursuit of continuing sustainable growth. With the support and guidance of the HFSF, the funding policies of the systemic banks have an impact on the real economy and in particular on the primary and secondary sectors, tourism, commerce, thus improving their growth prospects. The Fund has strengthened the country’s financial stability, as well as the systemic banks’ capacities to ultimately strengthen the prosperity of the Greek society.

  • It provides capital support to credit institutions under the current HFSF Law in accordance with European Union (the “EU”) state aid rules.
  • It monitors and assesses how the credit institutions that receive capital support from the Fund are complying with their restructuring plans while preserving the business autonomy of the credit institutions. The Fund ensures that such credit institutions operate on market terms and that private sector participation in them is encouraged providing that any procedure is transparent and complies with the EU state aid rules.
  • It exercises the rights resulting from its participation in the credit institutions to which the Fund provides capital support, as defined in the applicable HFSF Law and in the Relationship Framework Agreements concluded with these credit institutions.
  • It disposes, in whole or in part, financial instruments issued by the credit institutions in which it holds an interest.
  • It participates in share capital increases of the systemic banks, with the same rights as a shareholder holding common shares and the ability to operate on market terms.

The above right facilitates the HFSF in safeguarding its investment in the long-term as well as its gradual disengagement from the banks, which within the context of its divestment strategy constitutes the Fund’s ultimate objective. According to the most recent amendment of L. 3864/2010 with Law 4941/2022, this constitutes from now on an aspect of the HFSF’s objective.