Piraeus Bank announces that the last remaining guarantees of the Hellenic Republic under Pillar II used by the bank for liquidity purposes will be redeemed on Thursday, April 28th 2016; these guarantees have been issued under the framework of L.3723/2008, related to “the strengthening of the liquidity of the Economy, for offsetting the impact of the international financial crisis”.
The Chairman of Piraeus Bank, Mr. Michalis Sallas stated that this development confirms that the Bank’s restructuring plan is on track, adding also that with the completion of the 1st review of the Greek economy by the institutions, the Greek Banking System will be further strengthened.
Piraeus Bank already repaid the Preferred Shares (Pillar I) held by the Government in the Bank’s share capital in May 2014, while it returned the “Special Bonds” (Pillar III) to the Government in September 2015.
Upon redemption of Pillar II bonds on April 28th 2016, Piraeus Bank will no longer have any reliance on L.3723/2008, and therefore it will no longer be subject to the restrictions of the support program, that, among others, required the appointment of a Greek State Representative in its Board of Directors, as was the case in the last 7 years.
It is noted that Piraeus Bank has fully repaid all the Pillars of L.3723/2008, without any loss to the Greek State as to the guarantees and capital it offered, while the Greek State has earned approximately €675 mn fees from Pillars II & III.