NBG absorbs Cooperative Bank of the Peloponnese 

The Cooperative Bank of the Peloponnese is heading toward a split between a “good” and “bad bank” as it is the only cooperative lender to have failed to cover its capital requirements. Its healthy side will be passed on to National Bank of Greece.

The country’s central bank decided yesterday to revoke the bank’s operating license as the deadline for the share capital increase of 17 million euros had passed without the bank having managed to collect the funds needed. Sources say it did not get anywhere close to that amount, meaning there was no choice but to revoke its license.

The bank’s deposits, amounting to 120 million euros, are fully safeguarded as they will be passed on to National Bank, which is also taking over the 14 branches the lender had across the Peloponnese. Sources say an effort is under way to safeguard the jobs of the bank’s 66 employees too.

National is taking over only the deposits that are guaranteed from the first euro, while the loans will go into the bad bank to be sold in the hope of collecting some of the outstanding payments to go toward the Deposit Guarantee Fund.

The other three cooperative banks that had to cover capital requirements, the Pancretan Cooperative, the Hania Cooperative and the Epirus Cooperative, have successfully completed the process exclusively through private funds.

Source: Ekathimerini.com – NBG absorbs Cooperative Bank of the Peloponnese

Attica Bank and Pancretan get extension

Attica Bank has secured an informal extension of 30 days until end-January from the competent authorities so as to complete its share capital increase.

The lender has gathered about 700 million euros of the 746 million it needs to collect in the context of the recapitalization process, with the outstanding amount set to be covered by a foreign institutional investor who has submitted a commitment to participate in writing.

The Attica management appears to have reached an agreement with the foreign investor and the 30-day extension has been granted so that the investor can complete the due diligence process ahead of the payment of the agreed amount.

The Pancretan Cooperative Bank has also been granted an informal extension, having already secured 70 million euros out of the 100 million required by the adverse scenario of the lender’s stress test. However, some sources note that the Iraklio-based cooperative will retain its autonomy even if it does not collect all the funds required by the adverse scenario, as the 70 million euros it has collected suffices to cover all the necessary requirements regarding its capital adequacy.

Source: Ekathimerini,com – Attica Bank and Pancretan get extension

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