Greek Economy and Finance Minister Kostis Hatzidakis on Tuesday, speaking before a relevant Parliament committee, said a current deal allowing a strategic investor to acquire and merge with non-systemic Attica Bank is “the best agreement” available for both the latter and the economy.
Hatzidakis reminded MPs serving on the committee of what he called the problematic course of the bank over the past 12 years, as well as the fact that regulatory authorities have warn that if the agreement is not achieved then a succession of problems will arise. He also underlined that only one investment scheme has emerged to acquire the specific bank, with whom the ministry has been in negotiations with the latter’s representatives for months.
The relevant committee has convened to deliberate over a draft law detailing a contract for the merger and investment of Attica Bank by Thrivest Holding Ltd., whose primary shareholders also control Pancreta Bank.
“I was obliged to answer two questions: First, what would happen if, adopting the views of certain opposition political parties, I rejected this agreement, which was reached after long negotiations. And secondly, if this deal is beneficial, or if there was another investor who would put in more money.”
In terms of the first question he posed, Hatzidakis read out portions of a letter he received from Bank of Greece (BoG) Gov. Yannis Stournaras.
According to the letter read by Hatzidakis, the influential central banker cited the vulnerable position of both banks, Attica and Pancreta, with failure to merge the two leading … “to their collapse, as they would not have access to ECB borrowing, and do not have sufficient liquidity to cover extreme deposit outflows.”
The minister said that, in this case, 1.6 billion euros in depositors’ money would be lost, namely, 909 million euros of non-guaranteed deposits held by Attica Bank and 726 million euros in deposits held by Pancreta Bank.
He flatly said there was “no other investor” interested in Attica Bank, in answering his second question.
