ATHENS (MNI) – The Greek government said Friday it is willing to
take part in the capital increase of state-run ATE Bank, which failed
the EU stress tests whose results were announced earlier today.
A press release by the Greek finance ministry said, “being the main
shareholder of the bank, the government is willing to strengthen the
bank’s capital adequacy and participate in a capital increase which will
be approved by the European Commission.”
Furthermore, the ministry called on ATE Bank to table a
restructuring plan within the next two months and put it into effect by
the end of the year. At the same it added that the adverse scenarios
included in the stress tests are very unlikely to materialize.
The statement said the Bank of Greece is in close contact with all
6 banks participating in the tests, “in order to evaluate the results
and their consequences.”
Greek Finance Minister George Papaconstantinou called on the Greek
banks to “proceed with strategic moves that will strengthen their
capital adequacy and boost their presence in the Greek financial
system.”
This is the fourth time in 10 days Papaconstantinou has urged Greek
banks to forge alliances. He has said that the Greek banking system
should be restructured in order to ensure its viability and
sustainability.
A few days ago, one of the largest banks in Greece, Pireaus Bank,
submitted an offer to purchase two smaller state-run banks, Tahidromiko
Tamieftirio, and ATE Bank. The offer is currently under consideration.
–Angelika Papamiltiadou, a_papamiltiadou@hotmail.com
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