Attica Bank and Pancreta Bank are about to formally conclude their merger on Tuesday as the shareholders of the two banking institutions are expected to give the green light during the general meetings.
In an exclusive statement to “Naftemporiki”, Bank of Greece (BoG) governor, Yannis Stournaras, underlined that “the creation of the fifth pole, i.e. a healthy and strong bank, following the merger Attica Bank and Pancreta Bank, is expected on the one hand to strengthen competition in the banking sector, and on the other hand to provide more favorable financing conditions for small and medium-sized enterprises.”
The targeting of the new organization in the financing of small and medium-sized entrepreneurship has been repeatedly confirmed by Attica Bank CEO Eleni Vrettos, who recently stated that “the need to strengthen access to the banking system of small and medium-sized enterprises is undeniable. This is the role we want the new bank to play: to be synonymous with entrepreneurship. The opportunity is here and we will make the most of it.”
A key milestone in the creation of the new, healthy bank is the raising of capital amounting to 735 million euros through a share capital increase (by October) where the Financial Stability Fund will contribute up to 475 million euros and Thrivest – interests of Baku, Kaimenakis and Exarchos – up to 200 million euros. In addition to the direct contribution of the shareholders in funds totaling 675.10 million euros, warrants will be issued in favor of the shareholders who will participate in the share capital increase in the amount of approximately 60 million euros.
The aim of raising said funds is, on the one hand, to cover the capital gap caused by the inclusion of the non-performing portfolios of the two banks in the “Hercules III” program and, on the other hand, to finance the business plan of the new unified bank, including the costs of reorganization and the investments in new technologies required to make it more modern and efficient.
