Attica Bank is making plans for a share capital increase of at least 300 million euros and will seek to cover the rest of its capital requirements (nearly 100 million) through the reduction of operational costs and the creation of internal capital.
According to its needs as determined by the Bank of Greece, Attica has to boost its capital base by 397 million (baseline scenario) or 434 million euros (adverse scenario).
The management strategy concerning the bank’s nonperforming loans will be determined in cooperation with the strategic investor, so that the main shareholder, the Public Contractors’ Pension Fund (TSMEDE), preserves its minority rights.
TSMEDE currently controls 51 percent of Attica, a figure that is set to drop to 34 percent after the increase.
The capital boost plan is awaiting the central bank’s approval, after which implementation will start immediately, with its completion seen by September.