Shares of Greek state-controlled lender Hellenic Postbank have been suspended from trading after suffering a 29 per cent loss on Thursday morning.
The shares took a hit after Greek Finance Minister Yannis Stournaras said yesterday that the bank has been judged unviable in reference to a report by the Greek central bank and its bank bailout fund.
The Greek government holds a 44% stake of the bank, which officials say is on the country's privatisation list, according to Reuters.
Hellenic Postbank was heavily invested in Greek government bonds but its value was mostly wiped out after a Greek debt restructuring was negotiated with private investors.
With Greece already under the relms of a full-scale international bailout, its banking sector has not been as prominently placed on the headlines as the Spanish banking crisis. However, Greece has already been transferring or winding down several banks that are deemed non-viable. For those deemed viable, €50bn has been set aside as part of the bailout in order to replenish their capital.
Stournaras said that the final terms of viable bank recapitalisations would be unveiled by the end of September.