Activation of a law on deferred taxation for Attica Bank – AMK € 365 million.

By Leonidas Stergiou

The Ministry of Finance is called for the second time in a year to calculate the amount of deferred tax that in the balance sheets of Attica Bank exceeds 267 million euros, which will be converted into a final requirement in favor of the State. This amount will be collected by Attica Bank by issuing warrants of equal value and then their unallocated amount will be converted back into HFSF shares.

This is in short the procedure followed in the case of the law on deferred taxation, which is activated for the second time for Attica Bank, after the announcement of losses for 2021 amounting to 104 million euros.

However, this time the process of the law on deferred taxation will be shorter and may not lead to a new increase in the HFSF interest rate in the Bank, as it will be preceded by the decided share capital increase of up to 365 million euros, in which they have the shareholders agree in writing.

The Bank received a letter from the main shareholders of TMEDE, Rinoa Ltd – Ellington Solutions SA, HFSF describing the main provisions of the agreement between them and their intention to make a second investment in the Bank, totaling up to 365 million, through a second share capital increase. and if required, in a third capital injection and / or in additional alternative actions. Following the capital increase or increases, the HFSF rate from 68% today is expected to fall to the level of 25% held by private shareholders. It is recalled that in December 2021, the Bank successfully completed the full coverage of the share capital increase, amounting to 240 million euros.

On the other hand, at this stage, however, the relevant procedures for determining the amount of additional losses, which will be required for the minimum credit rating of Omega, Astir 1 and 2 securitizations, are in full swing. According to a statement from Attica Bank, the Bank’s management can not estimate the exact amount, however, it is considering alternative credit risk removal tools, aiming to minimize the red loans of the past, with the least possible burden on shareholders. .

According to the same announcement, Attica Bank entered the new year strengthened, through the increase of 240 million euros (December 2021) and the simultaneous improvement of its key capital ratios and liquidity ratios, compared to the previous year. As it is pointed out, 2022 is expected to be a milestone year in its course so far, laying the foundations for its sustainable transformation, further reduction of its operating costs, but also its development, based on the Agreement of its main shareholders TMEDE, Rinoa / Ellington Solutions SA and HFSF.

Last year, the Bank significantly increased its commission income by 69%, increased its deposits by 4.3%, achieved a reduction in financing costs by 16% and a credit expansion by 12% (significantly higher than the average of the banking market) . In order to further strengthen its regulatory capital, the Bank’s Management decided to sell the POS activities and to actively use its investment properties.