BoG gov, FinMin to brief Parl’t on bank takeover

Bank of Greece Governor Giorgos Provopoulos and Finance Minister Yannnis Stournaras are on Friday to brief Parliament’s economic affairs committee on the transfer of the healthy assets of ATEbank to Piraeus Bank.

In a statement on Tuesday, the central bank stressed that the action taken to purge the ailing ATEbank was taken in cooperation with the Hellenic Financial Stability Fund and following consultation with the government and representatives of the country’s international creditors.

The central bank added that the whole process was undertaken «with full transparency,» noting that the country’s loan agreement with creditors does not allow stakeholders to recapitalize state-controled banks by means of the HFSF.

In conclusion, the central bank said that Piraeus Bank was chosen only after a «confidential diagnostic procedure» involving Greece’s four largest banks which however did not express interest. The Bank of Greece added that it also charged two international investment banks with finding a potential foreign investor but this process did not bear fruit.

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