ATHENS Oct 6 Small Greek lender Attica Bank
will issue government-guaranteed bonds that can serve
as collateral to borrow funds from the Greek central bank's
emergency liquidity facility (ELA), its deputy chief executive
told Reuters on Thursday.
The bank, majority owned by the engineers pension fund
TSMEDE, suffered deposit outflows in the last month after the
Bank of Greece asked it to freeze lending and address corporate
"We will issue 380 million euros of such bonds to have a
comfortable collateral cushion for tapping the central bank's
ELA (emergency liquidity assistance) window," Deputy CEO
Thanasis Tsadaris told Reuters.
All Greek lenders have made use of such bonds under a
liquidity support scheme enacted in 2008 in the wake of the
global credit crisis after the Lehman Brothers collapse.
"It's a proactive move. Like other Greek banks, we had
issued about one billion euros of such bonds since 2009 but
retired them all in July this year as we had ample collateral,"
But Attica, which has a 17.2 percent core Tier-1 capital
adequacy ratio, suffered deposit outflows in the last 20 days
and had to take action, he said.
The executive said the bank has the full support of the Bank
of Greece on the move but formal approval by the EU's
competition watchdog DGCom will be needed, given the state
guarantee feature of the issue.
Last month Attica's shareholders approved a new chief
executive and board chairman at the bank as part of moves to
comply with issues raised by a central bank audit.
Apart from corporate governance issues, such as having
pension fund officials rather than bankers in executive posts,
the audit found that Attica needed to improve its organisation,
upgrade information technology systems and deal with high labour
(Reporting by George Georgiopoulos; Editing by Toby Chopra)