BERLIN (MNI) – The following is the verbatim text of a press
release of the Greek Ministry of Finance and a statement of the Greek
Finance Minister George Papaconstantinou regarding the outcome of the
stress tests of the Greek banking system:

The Ministry of Finance welcomes the outcome of the EU-wide stress
test, which was conducted using a common methodology and had as
objective to assess the resilience of the banking system to possible
adverse economic developments in the period 2010-2011. The enhanced
transparency that has been achieved with the publication of these
results is very important.

In Greece, six banks – namely National Bank of Greece, EFG
Eurobank, Alpha Bank, Piraeus Bank, Agricultural Bank and Postbank –
participated in the stress test exercise. The six banks represent more
than 90% of the total assets in the Greek banking sector (excluding
foreign subsidiaries) although the required participation for the stress
test was a minimum of 50%.

In the interpretation of this outcome, it is imperative to
differentiate between the results obtained under the different
scenarios. The results of the adverse scenario should not be considered
as representative of the current situation or possible present capital
needs.

A stress testing exercise does not provide forecasts of expected
outcomes since the adverse scenarios are designed to reflect extreme
assumptions, which are therefore not very likely to materialize.

Nevertheless, with the aim of ensuring the highest possible degree
of robustness and financial stability, the Bank of Greece is in close
contact with the participating financial institutions to assess the
results of the test and their implications, in particular any potential
recapitalisation need.

In this context, Agricultural Bank of Greece, is invited to propose
a plan to address the weaknesses revealed by the stress test within two
months and to implement it, in agreement with the supervisory authority,
by the 31st December 2010. The Greek Government commits to safeguard
financial stability and to enhance the solvency of the Agricultural Bank
of Greece to withstand the possible losses should private funding
sources not be sufficient, in line with EC state aid rules.

In order to safeguard the stability of the Greek banking system in
general, Greece has currently in place the following schemes, which are
approved or are in the process of being approved by the European
Commission:

— Recapitalization measures with a total approved amount of 5
billion and a remaining available amount of 1.2 billion. This scheme
is valid until 31st of December 2010. The conditions attached to gain
access to the schemes are described in law 3723/2008.

— The Financial Stability Fund scheme, with a total amount of 10
billion. The Financial Stability Fund is an integral part of the
Memorandum of Understanding agreed to by the European Union, the
European Central Bank, International Monetary Fund and the Greek
Government.

It has been legislated by the Greek parliament (Law 3864/2010) and
has formally been notified to the European Commission. The purpose of
the Fund is to safeguard the stability of the Greek banking system by
strengthening the capital adequacy of credit institutions legally
operating in Greece.

More particularly in the case of the Agricultural Bank of Greece,
where the Greek State is the main shareholder, the Ministry of Finance
foresees to participate in a capital share increase, following approval
by European Commission.

Prior to this communication, the Ministry of Finance has been in
contact with competition services of the European Commission in order to
ensure that the terms and conditions of the contemplated measures comply
with EU State-aid rules.

The Minister of Finance, George Papaconstantinou, made the
following statement:

The results are positive and show that the Greek banking system can
cope even in the extreme conditions of a stress test. With the
recapitalization scheme in place and the Financial Stability Fund the
Greek Government has created sufficient mechanisms for the support of
the financial system and of the economy as a whole.

The Greek banks are themselves called upon to assess the stress
tests results and take initiatives and strategic decisions which will
further reinforce their capital adequacy in the context of the
restructuring of the Greek banking system.

[TOPICS: MGX$$$,M$X$$$,M$$CR$,MT$$$$]