A SURPRISE offer by Piraeus Bank, Greece’s fourth largest, to buy the government’s stakes in two other lenders could be the start of a much-needed consolidation in the country’s banking industry. It could also give a boost to the big privatisation programme
that the government is planning, to help cut its crippling debt burden. But the proposal is likely to prove highly controversial.Piraeus’s boss, Michalis Sallas, a smart and stealthy mover in Greek
banking, announced his offer to pay the state 701m ($900m) in cash for a 33% share of TT (Hellenic Postbank) and a 77% share of ATE (Greek Agricultural Bank) on July 15th. Both banks are losing money, but TT is generally regarded as the apple of the Greek state’s eye because of its solid deposit base. Quite the opposite, ATE has long been used by administrations as something of a
trash bin for bad loans. Both institutions also have a symbolic significance. TT is
Kod: Zaznacz cały
http://www.royalmewigs.com/lace-human-hair-wigs-celebrity-wigs-c-10_22.html
associated with the growth of the Greek petit bourgeoisie: it is a household brand that spells security. Greece’s large agricultural class has emotional ties to ATE that are hard to sever.According to Piraeus, if the three banks join forces they will form the second-largest lender in the domestic industry, with combined assets of around 105 billion and deposits of
Kod: Zaznacz cały
http://www.royalmewigs.com/lace-human-hair-wigs-celebrity-wigs-c-10_22.html
64 billion. It talks of cost reductions of up to 220m and gains from synergies of up to 100m. However, Standard & Poor’s responded to the news of the offer by putting Piraeus Bank on its watch list for a possible downgrading of its credit rating—despite the deal’s merits in terms of improving Piraeus’ business profile and deposit base