Alpha Bank announced on Thursday that the European Commission had given the green light for the implementation of the lender’s restructuring plan, which Moody’s rating agency described as a “credit positive event.”
The restructuring plan provides for actions that will help it return to sustainable profits. The Commission noted that the plan is in line with regulations concerning state subsidies and that the actions which have already been implemented as well as those included in the plan will create the right conditions for the lender to stage a full return to sustainable profits.
The Commission deemed that the buyout of local rival Emporiki made a positive contribution to Alpha’s sustainability as it allowed for the creation of significant synergies.
Moody’s said the development means Alpha can proceed with its plan, which has already improved its credit profile.
It added that Alpha has recorded notable progress in cost management by incorporating Emporiki.