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Liquidating the "bad" TBank

18 December 2011 / 18:12:42  GRReporter
3353 reads

TBank, which is in liquidation, is transferring its deposits, contracts and assets (loan portfolios and securities) to the Savings Bank.

This decision was taken by the Bank of Greece on Saturday, after the unsuccessful attempts of ΤBank (formerly Aspis Bank) to deal with its equity issues.

This will ensure the deposits of investors and the fate of the bank employees. The “bad” TBank assets, like overdue loans and the claims of the bankrupt insurance company Commercial Value, will be covered by the Fund for Deposit Insurance (ΤΕΚΕ) within the law 3601/2007, recently amended by law 4021/2011.

According to information, losses, which will be covered by the Fund, amount to at least 600 million euros. The exact amount of losses will be announced in the coming days.

Let us remind you that after the capital increase in early 2010 the Savings Bank had a 33 percent share in TBank, under the rescue plan drawn up to tackle the problems that bank was facing.

The advent of the credit crisis and the severe financial problems of the Aspis group companies, whose main shareholder was Pavlos Psomiadis, forced the entry of the Savings Bank in the share capital of the bank.

Bank of Greece statement

As noted in a press release of the Bank of Greece, the competitive process from Art. 63d of H. 3601/2007 was held in order to find a successor of TBank deposits and activities.

As a result of this procedure, deposits, contracts and assets (loan portfolios and securities) of TBank will be transferred to the Savings Bank.

The Savings Bank assumes continuation of TBank activities and the difference between the transferred assets and liabilities will be covered by the Fund for Deposit Insurance, under the law.

TBank's licence was revoked and its liquidation was announced. Ioannis Galanopoulos was appointed as liquidator.

With the implementation of the new rules for rescuing the financial and credit institutions in respect of TBank, all deposits of its customers are guaranteed, as well as the smooth continuation of its activities, which will be undertaken by the current staff and existing branch network.

Tags: TBank Aspis Group Greece liquidating
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