The proposed solution for the Attica Bank and the Pancreta is the optimal solution both for financial stability and for the Greek taxpayer, assured the Governor of the Bank of Greece, Yannis Stournaras, speaking recently at the Standing Committee on Economic Affairs of the Parliament during the examination of the draft law of the Ministry of Economy and Finance for the ratification of the merger agreement between the Bank of Attica and the Bank of Greece and the investment between the Hellenic Financial Stability Fund (HFSF) and the company Thrivest Holding. 

He argued that the claims made that the deal "gives away the Bank of Attica to private parties" show a lack of understanding of the realities of the market and the European Commission's competition rules, and primarily the cost of safeguarding savers and financial stability in the country.

Mr. Stournaras argued that the Greek State, which he said would have invested a total of €950 million in the Attica Bank over a ten-year period with an annual return of 4%, would have earned around €1.2 to 1.6 billion. The investment will therefore be profitable. On the other hand, the private investor, as indicated, is participating in the capital increase on much more onerous terms than those on which private investors participated in all the capital increases carried out by the four banks.

He clarified that, apart from Thrinvest, there was no interest from any other private investor to participate in the capital increase. He warned that in the 'desperate case' that the deal does not go ahead, there will be significant and chain negative consequences. Such a development, he said, would lead to a significant outflow of deposits for both Attica Bank and Pancreta Bank, which, if combined with the acute problem of bad loans faced by the two banks, would lead to their collapse. As a result, both the value of the €480 million TFS in Attica and the €100 million Tier 2 security issued by the bank in 2018 and held by the Greek State would immediately decrease to zero.

In addition, given that the unguaranteed deposits of the two banks amount to approximately €1.6 billion (€909 million for Attica Bank and €726 million for Pancretia), households, businesses, and public entities would suffer a significant haircut on their deposits.

In addition, the Deposit Guarantee Fund would be required to pay €1,8 billion for the guaranteed deposits of Attica Bank and €1,7 billion for those of Pancreta. T