HELLENIC: We will raise capital to cover stress tests shortfall

The Hellenic Bank has said that the results of the Comprehensive Assessment, which resulted in a residual capital requirement of €105 million, are in line with the capital plan of the Bank.

“The Bank is already at an advanced stage of raising capital through a rights issue, for an amount which will exceed the Comprehensive Assessment outcome” a press release of the Hellenic Bank said on Sunday.

The Hellenic Bank was among the 130 banks across the Eurozone that took part in the stress tests the results of which were published on Sunday by the European Central Bank and the European Banking Authority.

For the Hellenic Bank, “the €277 million result from the `adverse scenario` is reduced by mitigating factors to €105 million, that will be covered though our forthcoming rights issue. The Hellenic Bank will raise more capital than the residual capital resulting from the Comprehensive Assessment in order to actively support the recovery of the Cyprus economy” the press release noted.

Irena Georgiadou, Chairwoman of the Hellenic Bank, said that “the Comprehensive Assessment results in a residual capital need of €105 million under the adverse scenario for Hellenic Bank, which is fully in line with our capital raising actions. Our planned rights issue will raise significantly more than the residual Comprehensive Assessment calculation, and this will allow us to pursue our ambitious strategic growth plans to gain market share and utilise our large liquidity buffer. Our major shareholders support these growth plans as well as the capital raising”.