Attica Bank heading for new capital increase

The streamlining of Attica Bank and its merger with Pancreta Bank will require a new share capital increase, which according to information will possibly even reach 600 million euros.

That amount is a first estimate given the hole that will be created in the funds of the two banks due to the liquidation of bad loans, which, according to the financial statements they published, will total €3.4 billion.

The burden of the impending increase is expected to be borne by bank bailout fund HFSF, which currently controls 72.5% of Attica Bank after the share capital increase of €473.3 million completed last April, as well as the successive conversions of the warrants that were issued under the deferred tax credit (DTC) framework.

In the context of the previous increase, the fund had invested €329 million, maintaining, as it had pointed out in its announcement, “its rights in Attica Bank, as well as in the new bank that will arise after the merger with Pancreta.”

Also certain to participate are the Single Social Security Entity (EFKA) and the Engineers and Public Works Contractor Fund (TMEDE), whose respective stakes in Attica Bank are 7.6% and 4%.