Greek State To Safeguard Financial Stability of ATEbank
July 23 2010 - 2:13PM
Dow Jones News
The Greek Finance Ministry said Friday it is committed to
safeguarding the financial stability of ATEbank (ATE.AT) after the
institution failed European Union-wide stress tests.
ATEbank was only Greek bank to fail the stress tests. In the
worst-case scenario tested, the bank would have a shortfall of
EUR242.6 million euros compared with a 6% Tier 1 Capital Ratio,
which was the benchmark level set by authorities to pass or fail
the tests.
"The Greek Government commits to safeguard financial stability
and to enhance the solvency of ATEbank to withstand the possible
losses should private funding sources not be sufficient, in line
with European Commission state aid rules," the Finance Ministry
said in a statement.
The Ministry invited ATEbank to propose a plan to address
weaknesses revealed by the stress test within two months and to
implement it by the end of the year.
A total of six Greek banks participated in the stress tests,
which represent 90% of the total assets of the Greek banking
sector.
The other five Greek banks were National Bank of Greece (NBG),
EFG Eurobank (EUROB.AT), Alpha Bank (ALPHA.AT), and Postbank
(TT.AT) which all passed comfortably, while Piraeus Bank (TPEIR.AT)
passed on the borderline.
-By Nick Skrekas and Alkman Granitsas, Dow Jones Newswires; +30
210 2830685; nick.skrekas@dowjones.com