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.
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 of 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 the relationship framework agreements entered into with such credit institutions, according to the HFSF 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.
5. Provides loan to the Hellenic Deposit and Investment Guarantee Fund (HDIGF) for resolution purposes.
6. 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.