The promoted answer for Attica Financial institution and Pankritia Financial institution is the very best answer each for monetary stability and for the Greek taxpayer, assured the governor of the Financial institution of Greece, Yannis Stournaras, talking to the Standing Committee on Financial Affairs of the Parliament throughout the examination of draft legislation of the Ministry of Nationwide Financial system and Finance for the ratification of the Merger Settlement of the Financial institution of Attica with Pankritia in addition to the Funding between the Monetary Stability Fund (TFS) and the corporate “THRIVEST HOLDING”.
He argued that the claims made that the settlement “items Attica Financial institution to non-public people” present a lack of expertise of the actual market knowledge and the competitors guidelines of the European Fee, and above all the prices for safeguarding savers and monetary stability in nation.
Mr. Stournaras argued that the Greek State which, as he talked about, can have invested a complete of 950 million euros within the Financial institution of Attica in a decade, with an annual return of 4%, can have obtained round 1.2 to 1.6 billion euros . Subsequently the funding can be worthwhile. However, the personal investor, as he talked about, participates within the Share Capital Improve with far more onerous situations in comparison with these personal buyers participated in all of the share capital will increase carried out by the 4 systemic banks.
There was no curiosity from one other personal particular person
Mr. Stournaras clarified that aside from Thrinvest there was no curiosity from another personal investor to take part within the Capital Improve. He additionally warned that within the “inevitable case” that this settlement doesn’t go forward, there can be important and chain-linking unfavourable penalties. Such a growth, as he stated, would result in a big outflow of deposits for each Attica Financial institution and Pankritia Financial institution which, if mixed with the acute downside of unhealthy loans confronted by the 2 banks, would result in their collapse. Thus, the worth of the TCHS in Attica, which at the moment quantities to 480 million euros, would instantly be zeroed out, as would the worth of the Tier 2 bond amounting to 100 million euros maturing in 2028 that the financial institution has issued in 2018 and is held by the Greek State.
As well as, provided that the unguaranteed deposits of the 2 banks quantity to roughly 1.6 billion euros (909 million euros for Attica Financial institution and 726 million euros for Pankritia) households, companies and public our bodies would endure a big haircut deposits.
As well as, the Deposit Assure Fund could be required to pay 1.8 billion euros for the assured deposits of Attica Financial institution and 1.7 billion euros for the corresponding ones of Pankritia. The whole quantity, as Mr. Stournaras stated, far exceeds the accessible funds of TEKE, a reality that may drive it to show to the opposite systemic banks to be able to cowl its liquidity.
Watch dwell the talk on the draft legislation of the Ministry of Nationwide Financial system and Finance
SOURCE: ot.gr
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