Attica Bank share capital increase is approaching

The time is approaching for the share capital increase of Attica Bank, whose management this week expects DBRS Morningstar's evaluation of its bad-loan portfolio so that it can be included in the "Hercules 3″ bonds program of the state.

The management of Pancreta Bank expects the results of a similar exercise, bringing the total portfolio that will have to be cleared out close to 3.4 billion euros, of which €1.4 billion corresponds to Pancreta and the other €2 billion to Attica.

Given that the aim through the upcoming increase is for the single bank that will be created from the merger of Attica and Pancreta to be fully sound - i.e. to have a capital adequacy ratio of 15% and a single-digit ratio of nonperforming loans of 3% - the estimates raise the amount of funds which will be required between €600-700 million.

A new factor in the equation is that the...