With reference to an article in the newspaper “Politis”, dated 26 August, with title "Will the Church also go bankrupt?", and in particular the reference to Hellenic Bank, the CBC wishes to clarify the following:
(1) Hellenic Bank requires an overall recapitalisation of €294 million, which the bank will seek to meet through its own resources, first with the issue of shares amounting to €168 million for existing and new shareholders, and then with two issues of Tier 1 capital (Non-Cumulative Perpetual Capital Securities) for €126 million and €200 million, respectively. These issues will be proposed to the existing stakeholders in exchange of primary and secondary capital, totalling €307 million.
(2) In the case where the voluntary conversion of all securities is not possible, the necessary mechanisms are in place for a mandatory conversion, so as to cover all the capital needs of Hellenic Bank without requiring state aid (from the MoU). Thus, based on the current circumstances, there is no need for Hellenic Bank to come under government control or appoint a new Board of Directors.