The promoted solution for the bank of Attica and Pancretan bank is the best solution both for financial stability and for the Greek taxpayer, assured the Governor of the Bank of Greece, Yiannis Stournaras addressing on Wednesday the Standing Committee on Economic Affairs of the parliament during the examination of the draft law of the Ministry of National Economy and Finance for the ratification of the Merger Agreement of the Bank of Attica with Pancretan bank as well as the investment between the Hellenic Financial Stability Fund (HFSF) and the company "THRIVEST HOLDING".
He argued that the claims made that the agreement "gifts Attica Bank to private individuals" show a lack of understanding of the real market data and the competition rules of the European Commission, and above all the costs for safeguarding savers and financial stability in country.
Stournaras argued that the Greek state which, as he mentioned, will have invested a total of 950 million euros in Attica Bank in a decade, with an annual return of 4%, will have obtained around 1.2 to 1.6 billion euros. Therefore, the investment will be profitable. On the other hand, the private investor, as he mentioned, participates in the share capital increase with much more burdensome conditions compared to those private investors participated in all the share capital increases carried out by the four systemic banks.
Stournaras clarified that apart from Thrinvest there was no interest from any other private investor to participate in the Capital Increase. He also warned that in the "inevitable case" that the specific agreement does not go ahead, there will be significant and chain-related negative consequences. Such a development, as he said, would lead to a significant outflow of deposits for both Attica Bank and Pancretan Bank which, if combined with the acute problem of bad loans faced by the two banks, would lead to their collapse. Thus, the value of the HFSF in Attica, which currently amounts to 480 million euros, would immediately be zeroed out, as would the value of the Tier 2 bond amounting to 100 million euros maturing in 2028 that the bank has issued in 2018 and is held by the Greek State.
In addition, given that the unguaranteed deposits of the two banks amount to approximately 1.6 billion euros (909 million euros for Attica Bank and 726 million euros for Pancretan) households, businesses and public bodies would suffer a significant haircut deposits. The Deposit Guarantee Fund would be required to pay 1.8 billion euros for the guaranteed deposits of Attica Bank and 1.7 billion euros for the corresponding ones of Pancretan. The total amount, as Stournaras said, far exceeds the available funds of Hellenic Deposit and Investment Guarantee Fund, a fact that would force it to turn to the other systemic banks in order to cover its liquidity.