ATEbank to proceed with one-bln-euro share capital increase

ATEbank will proceed with a share capital increase plan in late January or early February, Theodoros Pantalakis, the bank’s chairman, said on Thursday.

Speaking to an Athens radio station, Pantalakis said consultations are underway with underwriters and consultants of the plan, while he noted that the share capital increase, totaling one billion euros, has already been approved by the EU-ECB-IMF “troika” and European authorities.

The Greek banker said ATEbank will use 675 million euros of the new money to repay preference shares owned by the state, while the remaining money will be used to deal with issues resulted from stress tests. Pantalakis also left the open the possibility of a merger between ATEbank and the loans arm of the Treasury and Loans Fund.

He also confirmed that the “troika” has recommended cuts between 25-28 pct in operating costs, something that could lead to decreases its salaries and the sell-off of subsidiaries or affiliates not related with the financial sector, in order to release more capital and create better conditions for sustainable growth.

On his part, Deputy Finance Minister Filippos Sahinidis earlier told reporters that the government was not considering the closure of ATEbank, as he reiterated that the Greek state will participate in a forthcoming share capital increase scheme by the bank.