Greece's bank rescue fund approved of Eurobank's acquisition of the New Hellenic Postbank. The acquisition will be part of the country's consolidation of the financial sector and was made as a stipulation for the next tranche of Greece's bailout.

Athens agreed with its backers from the Euro Zone and the International Monetary Fund to sell the New Hellenic Postbank and the Proton Bank. The sale are of the condition for the release of more funds from the EUR240-billion rescue package that will help Greece to stay afloat. The sale of the Postbank and that of the Proton Bank are part of the latest move in Greece's consolidation of its  battered banking sector. The sale and acquisition aims to form stronger, well-capitalized banks that will fund the economy out of its slump.

The Hellenic Financial Stability Fund (HFSF) announced that it is targeting that a binding agreement with Eurobank signed on Monday. The HFSF is the rescue vehicle set up to recapitalize Greece's major lenders.