Banif Financial Group is to sell its majority stake in Banif Malta plc in line with conditions dictated by a European Union bailout agreement sealed with Portugal last year, The Times reports.

The state aid agreement obliges the group to sells all its investments abroad. The Portuguese group owns more than 70 per cent of the shares in Banif Malta, whose capital is €32.5 million.

Banif Malta CEO Joaquin Silva Pinto said that the restructuring plan is still under discussion with the European Commission. The bank is looking for a strategic partner to replace the Portuguese group.