ATHENS Dec 11 Greece’s central bank has extended by a week to Dec. 18 the deadline for participation in a capital boost by Attica Bank, the bank said.
The modest lender aims to raise up to 750 million euros to plug a capital shortfall. By Friday, the original deadline, it had raised 597.three million euros, Attica mentioned in a statement
“It is for the greatest interest of the bank and its shareholders to extend the closing date for participation in the bank’s share capital enhance to Dec. 18,” the statement added.
Bank of Greece carried out a extensive assessment of Attica, in line with the European Central Bank’s well being check of Greece’s 4 big banks, in October.
The assessment showed the lender had a 1.02 billion euro capital hole below the most adverse scenario and a shortfall of 857 million euros beneath the stress test’s baseline situation.
Attica, which has 79 branches, submitted a capital strategy to the Bank of Greece on how it plans to cover its capital requirements.
Soon after the capital improve is concluded, the bank will resort to Greece’s bank rescue fund HFSF for state help in the case of any remaining capital shortfall.
Greece effectively recapitalised its four greatest lenders this month and only Piraeus and National will have to tap into euro zone aid to assist cover capital needs.
The two banks will want five.7 billion euros ($ 6.1 billion) of euro zone money, a lot reduced than the 25 billion earmarked for the banking sector under an international bailout Greece had clinched with its lenders this summer time. (Reporting by Lefteris Karagiannopoulos Writing by Angeliki Koutantou Editing by Catherine Evans)