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According to a statement, Probank has informed the Bank of Greece that it would be impossible to raise the required capital for its recapitalisation within the time limit. In order to secure deposits and credit stability, the Bank of Greece has examined the interest of credit institutions for the acquisition of certain parts of Probank’s liabilities and assets, and decided for their transfer to the National Bank of Greece, following its proposal approved by the Financial Stability Fund.

Parts of the liabilities that will be transferred include deposits, while assets include mainly loans issued by the bank (except outstanding loans).

The amount that will come from the difference between the value of transferred assets and liabilities will be paid by the Financial Stability Fund, as provided by law.

Probank’s licence has been revoked and a liquidation process has started for the bank with liquidator PwC Business Solutions. After the liquidation, demands of third parties will be satisfied, as provided by law, in the order given. Probank’s customers’ deposits have been secured and customer servicing is continuing.

In a statement, the National Bank said that it has been participating in the restructuring of the banking system and after a competition the Financial Stability Fund determined it for the absorption of Probank’s healthy part.

Based on data from 31 March 2013, Probank’s healthy part 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 bid of the National Bank fully provides for Probank’s depositors and customers and their transactions will be carried out according to the established order without any change, in order to ensure the functioning of the bank.

The absorption of assets will be accompanied by the appropriate capitalisation from the Financial Stability Fund, and an independent auditing firm will verify Probank’s balance data in the next period.

If there is a difference between the values of transferred assets and liabilities and the final amount, it will be covered by the Financial Stability Fund and will result in the provision of additional liquidity.