In the original agreement to participate in the increase in the authorized capital Attica Bank she concluded Prosperity Holding (shares of D. Backus, G. Kaimenakis and A. Ekzarkos), having invested 64 million euros in the AMC for the amount of 473.3 million euros. The agreement, as reported bankprovided that thousand will participate with 329 million euros, while SECTION will contribute 40 million euros. The agreement, which has yet to be formalized into legal text, also provides for the next steps for the merger Bank of Greece (in a single form after the takeover of HSBC and the Cooperative Bank of Central Macedonia) with Attica Bank to create a single bank in which Thrivest will control 50.1%.

As can be seen from the content of the agreement, HFSF will cover most of the AMK, retaining its percentage share, i.e. 69.5%. TMEDE’s share, currently at 20.11%, will be reduced by about half to pave the way for Thrivest’s participation, which is estimated to be around 11.5% after the increase, taking over the percentage that is scattered today, around 1.9%. The increase will also apply electronic EFKA, also retaining its percentage, i.e. 8.4%. According to Attica Bank, the agreement is expected to be reflected in the final binding legal texts that will form part of the AMK prospectus. According to the information, warrants will not be issued at this stage, as originally envisaged, as the acquisition of a controlling stake in Thrivest will be achieved in the next stage and through an exchange relationship with a single Pankritia Bank, but it is not excluded that this will be done a second time.

HFSF will cover most of the AMK while retaining its share, i.e. 69.5%.

The merger of the two banks is expected to take place within the next 12 months and after they are assessed to determine the exchange relationship. With both banks saddled with a high percentage of non-performing loans, the goal is for financials to be on a comparable basis while continuing to draw down inventories red loans, but also when calculating the reserves available to each bank. It is recalled that Attica Bank is launching the sale of two portfolios of Astir I and II red loans in the amount of 320 and 370 million euros, respectively, which were planned to be included in Hercules, but did not materialize and for which the bank says it became the recipient of interest from their sale. Accordingly, alternatives are being sought for the €670 million Metexelixis portfolio securitized in 2018 with investor Pimco, as well as the €1.3 billion Omega portfolio securitized also with investor Ellington.

As for Pancreatia, the loan portfolio is 1.7 billion euros, of which 1.1 billion are classified as overdue (64%). In addition to the high NPE level, the bank has a low coverage ratio, which is limited to 35%, while together with the coverages, the reserve ratio is about 88%. Last year, the bank embarked on a €100 million share capital increase to cover losses arising from the management of the NPS, and a reorganization plan is being developed to take into account the merger with HSBC and the Central Cooperative Bank. Macedonia. The merger plan does not exclude the possibility of a new AMK to be placed in 2024, and the amount of funds depends on the losses that will arise from the sale of red loans. The aim is that the new bank that will appear be completely restructured and become the fifth pole in the banking system with assets reaching 8 billion euros.