GREECE/FILE: Bank chiefs say the merger of Greece's largest banks, Eurobank and Alpha Bank, is a big step forward for the country

Record ID: 560678

  • Title: GREECE/FILE: Bank chiefs say the merger of Greece's largest banks, Eurobank and Alpha Bank, is a big step forward for the country
  • Date: 30th August 2011
  • Summary: ATHENS, GREECE (AUGUST 29 2011) (REUTERS) ***CONTAINS FLASH PHOTOGRAPHY*** EFG EUROBANK CEO NIKOS NANOPOULOS SPEAKING WITH OTHER OFFICIALS NANOPOULOS AND ALPHA BANK PRESIDENT YANNIS COSTOPOULOS TALKING TOGETHER COSTOPOULOS SITTING DOWN AT PANEL FOR NEWS CONFERENCE PHOTOGRAPHERS TAKING PICTURES OF BANK CHIEFS SITTING FOR NEWS CONFERENCE CHIEFS OF BOTH BANKS SEATED FOR A NEWS CONFERENCE (SOUNDBITE) (Greek) ALPHA BANK PRESIDENT YANNIS COSTOPOULOS SAYING: "We always said the banking system in Greece was too big and something needed to be done so we made the first step, we are creating the largest bank in Greece in the private sector and at the same time the largest bank in southeastern Europe. At the same time we are also raising our status in Europe, we are no longer one of the little guys." CHIEFS OF BANKS SEATED FOR A NEWS CONFERENCE (SOUNDBITE) (Greek) ALPHA BANK PRESIDENT YANNIS COSTOPOULOS SAYING: "This is very important for Greece, it is the first, step, the first foreign investment in Greece in many years. The participation of Qatar in this plan, and their efforts to make this happen, is a big vote of confidence for Greece." JOURNALISTS AND OFFICIALS FOLLOWING NEWS CONFERENCE (SOUNDBITE) (Greek) EFG EUROBANK CEO NIKOS NANOPOULOS SAYING: "We should understand that it was a difficult and complex agreement that we made which I believe will benefit all of us particularly during this difficult time we are living in." BANK HEADS SPEAKING AS JOURNALISTS AND OFFICIALS LISTEN (SOUNDBITE) (Greek) EFG EUROBANK CEO NIKOS NANOPOULOS SAYING: "We are creating significant capital reserves which we will be able to use in order to face any dangers whatsoever."
  • Embargoed: 14th September 2011 13:00
  • Keywords:
  • Location: Greece, Greece
  • Country: Greece
  • Topics: Economy
  • Reuters ID: LVA9T3WMTS72F0U7VAQRVR5E4BLM
  • Story Text: A merger between Greece's second and third largest lenders Eurobank and Alpha Bank, with a capital boost from Qatar, is a vote of confidence for Greece, the banks' heads said on Monday (August 29), that will help the indebted economy by creating stability in the banking sector.
    The move will also create the largest private Greek bank and the largest bank in southeastern Europe.
    "We always said the banking system in Greece was too big and something needed to be done so we made the first step, we are creating the largest bank in Greece in the private sector and at the same time the largest bank in southeastern Europe. At the same time we are also raising our status in Europe, we are no longer one of the little guys," said Alpha Bank President Yannis Costopoulos, adding, "This is very important for Greece, it is the first, shall I say step, the first foreign investment in Greece in many years. The participation of Qatar in this plan, and their efforts to make this happen, is a big vote of confidence for Greece."
    The merger between Greece's EFG Eurobank and Alpha Bank will include share swaps and a capital boost from Qatar, providing stability in the banking sector and help the new bank avoid tapping into an emergency state fund, said EFG Eurobank CEO Nikos Nanopoulos. He also said the impact of the PSI (private sector involvement) has already been accounted for in the agreement.
    "We should understand that it was a difficult and complex agreement that we made which I believe will benefit all of us particularly during this difficult time we are living in," said Nanopoulos. "We are creating significant capital reserves which we will be able to use in order to face any dangers whatsoever."
    Qatar will inject capital in the new bank via a 500 million euro convertible bond, another banking official involved in the deal said on Sunday, and a 1.25 billion euro rights issue will follow.
    Greek banks are expected to take another strong hit with an upcoming bond swap plan aimed at saving Athens from bankruptcy, since they are the biggest private holders of the country's 300 billion euro-plus debt, with a combined government bond portfolio of about 40 billion euros. And concerns over this and the risk that banks may have to turn to an emergency state fund for recapitalisation have set the country's banking index plunging over the past months.
    The central bank chief and the Finance Minister welcomed the deal, saying the participation of a strong foreign investor was a boost to the banking system and the whole economy.
    The deal comes as EU and IMF inspectors begin a visit to examine the country's performance against conditions set for its rescue by the international community.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register