Most Greek banks strong enough to pass EU stress test

Most Greek banks have adequate capital to pass upcoming EU stress tests, Vassilis Rapanos, National Bank (NBG) chairman, said on Wednesday.

“Greek banks, except ATEbank passed the stress test last year. All banks are now in better shape in terms of capital adequacy to face the new stress test that will take place soon, including ATEbank,» according to Rapanos.

ATEbank was the only Greek lender to fail EU-wide bank stress tests last year. It announced on Tuesday a 1.26 billion euro capital increase, offering its new shares at a 27.3 percent discount to Monday?s adjusted closing price.

The bank said it would issue 1.17 billion new shares with a proposed subscription price of 1.07 euros each, and with pre-emption rights of 13 new shares for every one existing share.

The Greek government, which owns 77 percent of the bank, has said it will take part in the capital increase, contributing 973.7 million euros, and will also buy any unsubscribed shares up to amount of 170.75 million euros.

In mid session trade on Wednesday, ATEbank shares were down nearly twelve percent at 0.59 euros, versus a 0.92 percent dip in the broader market.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.