Non-systemic banks Attica Bank and Pankritia are in the final stages of completing their formal merger. Today, the green light is expected from the shareholders of both banks during general meetings in Athens and Heraklion, Crete, at 10:00 a.m. and 4:00 p.m., respectively.
In an exclusive statement given to “N”, the Governor of the Bank of Greece, Yannis Stournaras, underlines that “the creation of the fifth pole, that is, smaller, healthier and stronger and capitalized banks, where the main axis will be the bank resulting from the merger of Attica Bank and Pankritia Bank, should, on the one hand, strengthen competition in the banking sector of the economy in all sectors and, on the other hand, provide more favorable financing conditions for small and medium-sized enterprises”.
Indeed, the new organisation’s aim to finance small and medium-sized businesses has been repeatedly confirmed by Attica Bank CEO Eleni Vrettou, who characteristically stated at the plenary session of the Annual General Meeting in July that “the need to strengthen access to the banking system for small and medium-sized businesses, but also for those who are clean and who escape the “suffocation” of public servants, 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.”
In October, AMK
A key milestone in the creation of the new and fully sound bank is the raising of capital of €735 million through a share capital increase (by October), where the Financial Stability Fund will contribute up to €475 million and Thrivest – interests of Baku, Kaimenakis and Exarchos – up to €200 million. In addition to the direct contribution of shareholders in funds totaling €675.10 million, warrants will be issued in favor of shareholders participating in the AMC for approximately €60 million.
The purpose of raising these 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” programme and, on the other hand, to finance the business plan of the new unified bank, including the reorganisation costs and investments in new technologies needed to make it more modern and efficient.
The creation of the new Board of Directors
Within November – after the conclusion of the AMC – the shareholders will be required to propose the members of the new board of directors who will then be forwarded to the supervisor for approval. The shareholders’ proposals will take into account the Fit & Proper conditions dictated by the Unified Supervisory Mechanism since the new persons who will be invited to join the Board of Directors will have to obtain approval from Frankfurt.
Sources with knowledge of the proceedings estimate, however, that the management of the new bank will remain in the hands of Attica Bank’s CEO, Eleni Vretto, although it is not known whether there will be changes at the level of the Chairman of the Board of Directors or whether the current Chairman Ioannis Zografakis will keep his position.