ECONOMY

Geniki shifts focus to helping companies, plans for increase

Piraeus Bank subsidiary Geniki Bank is transforming into a credit institution specializing in development and investment and will conduct a share capital increase in the first quarter of 2014, it announced on Monday.

Its new business plan is almost complete and will soon be submitted to the authorities for approval. Bank officials note that a number of contacts have already been made with foreign investors and that a strong interest has been expressed in their participation in the new project.

Sources say that the increase will exceed 200 million euros, although no definitive decisions have yet been reached. In the coming weeks Geniki’s administrative team will also be completed with the addition of new officials.

Almost a year since its acquisition by Piraeus, Geniki is preparing for its next moves with minimal dependence on the state, the Hellenic Financial Stability Fund (HFSF) and the Bank of Greece for its capital and liquidity.

Its activities will focus on supplying services and products for wealth management, the selective funding of healthy enterprises with capital and cash and the parallel drawing of funds from international markets, consultation services on the capital market, management of international and domestic development and investment funds for the financing and streamlining of companies, as well as the supply of integrated services for the efficient management of nonperforming loans.

Its financial figures for the first nine months of the year show that losses were contained to 14.4 million euros, from 85.3 million in the same period of 2012. Operating losses declined from 13.1 million euros in Q1 and 9.5 million in Q2 to 4.6 million euros in Q3.