Greece`s Eurobank will buy out the Bulgarian branches of another top Greek lender Alpha Bank for the symbolic price of one euro, a Eurobank source said Friday.
"The agreement is all drawn up," the source said, adding that the boards of Eurobank, Greece`s number three lender, and number four Alpha Bank would separately meet later on Friday to approve it.
Around 80 Alpha branches will be absorbed by Eurobank`s Bulgarian subsidiary Postbank.
"Postbank currently has 180 branches. With this acquisition, it will become the fourth-largest bank in Bulgaria," the Eurobank source said on condition of anonymity.
Greek daily Kathimerini, which broke the story Friday, noted that the country`s recently-recapitalised lenders are under pressure by European authorities to concentrate on the domestic market.
Bank executives therefore expect the banks` presence abroad will be "drastically" reduced over the next two years, excepting markets where they have a strategic presence, Kathimerini said.
Greece`s biggest lender National Bank has been under pressure to sell 40 percent of its Turkish subsidiary Finansbank, the daily said.
