National Bank of Greece absorbs Probank

Written by on July 29, 2013 in Business - No comments

The National Bank of Greece (NBG) announced it will absorb Greek lender Probank which recently broke into a good and bad bank, with the former being snapped up by NBG.

Probank informed the Bank of Greece last Friday that it would be impossible to privately raise the required capital for its recapitalization.

Probank’s licence has been revoked and the bank will enter liquidation, after which demands of third parties will be satisfied, as provided by law. Probank’s customers’ deposits are fully secured.

The good part of Probank which will be absorbed by NBG includes assets amounting to 3.103 billion euro, of which 2.597 billion euro loans, 3.203 billion euro liabilities, of which 3.123 billion euro deposits, and a network of 112 branches in Greece.

The absorption of assets will be accompanied by the Financial Stability Fund pumping capital into Probank and an independent auditing firm verifying the bank’s balance data subsequently.

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