Its shareholders are expected today Attica Bank obey TTE the capital plan of the bank and an agreement on their participation in the increase of the authorized capital, the amount of which is determined by the Bank of Greece to be close to 400 million euros, and from the side of the shareholders, the required amount of capital is estimated at about 600 million euros. Today’s deadline has been set by the Bank of Greece as the deadline for the main shareholders, i.e. HFSF and the TMEDE – Ellington consortium, to come to an agreement on AMC and how it will be covered, as well as on the details of the return on investment, which is subject to negotiations between major shareholders.

Considering the large difference in the assessment of the required AMC, as well as significant details of the agreement, such as the fate of the securitization for a total of 2 billion euros, a collapse in the agreement between shareholders, which entered into force for part of the Plan B of the Bank of Greece for the future Attica Bank, cannot be ruled out.

The difference between the two estimates, that is, between 400 and 600 million euros, is the result of the different approaches of the parties. For its part, the Bank of England determines the amount of the necessary increase at around 400 million euros, as this is considered sufficient to restore Attica Bank’s capital adequacy ratios. This means that the AMK is not aiming for a zero NPL ratio, a goal that, according to sources at the Bank of Greece, may not be realistic and therefore cannot be a requirement of the supervisory authority. This approach is also consistent with the agreement signed by the major shareholders in December last year, which provided for a new share capital of 365 million euros, a level which, according to the Bank of Greece, ensures the continuation of Attica Bank’s operations and compliance with capital requirements.

Various estimates of the required amount of funds.

On the part of TMEDE – Ellington, the size of the required capital increase is determined based on the need for a complete consolidation of Attica Bank, as well as funds for its further development. In this sense, a consortium of private shareholders, namely TMEDE – Ellington, is betting on the bank’s higher capital requirements as it seeks to secure a majority stake in a bank completely cleared of bad loans. This approach, in addition to increasing AMK to EUR 600 million, obliges HFSF, which is currently the largest shareholder of Attica Bank, to receive larger capital injections.

According to the information, the fate of the securitization launched by Attica Bank, totaling around 2 billion euros, is also a contentious issue in the negotiations between HFSF and TMEDE – Ellington. This is the €1.3 billion securitization of Omega Astir I and II, worth €320 and €370 million respectively, which Ellington “declares” as investment capital, a term that, according to the HFSF, cannot be accepted under a preliminary agreement. , as there should be an open tender.

It should be noted that the TMEDE-Ellington consortium contributed, as part of the first capital increase, which took place in December 2021 and amounted to 240 million euros, funds in the amount of 55 million euros and was allocated to a new contribution in the context of the proposed agreement for the new AMK, an additional 125 million euros. This amount, after negotiations last month, may increase to 140 million euros.

For its part, HFSF, on the basis of a new law governing its activities, can participate in an increase in the authorized capital or as a “savior”, i.e. in the context of a restructuring, or as an investor in order to maintain the value of their investment. In this case, he must participate in the increase on the same terms as a private person, in this case the TMEDE-Ellington consortium, so that his participation is considered to be on the terms of the purchase and the issue of state aid is not raised.