HFSF to have final say over 2 proposals for Attica Bank’s recapitalization, pending privatization

The Hellenic Financial Stability Fund (HFSF) is expected to take final decisions over the planned recapitalization-cum privatization of non-systemic Attica Bank in the coming days.

HFSF is the special purpose vehicle established under the first sovereign bailout with institutional creditors to help stabilizing Greece’s banking sector in the early stages of the debt crisis in 2010.

Two proposals are now reportedly “on the table”, namely, one filed by the civil engineers’ pension fund (TMEDE) in partnership with Ellington, and the other being tabled by Bain Capital – Flowers.

Press reports in Athens said Attica Bank’s board of directors has leaned towards the first proposal, although HFSF’s leadership will have the final say.

Both suitors presented their proposals on Tuesday to HFSF, with the latter’s general council to pick the winning proposal. HFSF currently controls 68 percent of HFSF’s shares.

TMEDE was the previous majority owner of the bank, which for several years has struggled in the domestic market.

Banking sector circles in the Greek capital claimed that Bain was asked to present its proposal because of certain “qualms” about Ellington’s proposal and stature. Pressed about details, the same circles referred to the fact that no credit institution is found among Ellington’s portfolio, while its current cooperation with Attica Bank deals entirely with the management of the latter’s NPLs portfolio.