Attica Bank and Pancretan Bank Merger Approved by Greek Parliament

07:32 26/7/2024 - Πηγή: iEfimerida

In a significant development for Greece's banking sector, the merger between Attica Bank and Pancretan Bank has been approved by the Greek Parliament.

The merger received strong support from the ruling New Democracy

party and the socialist Pasok group. All opposition parties voted against it.

The merger agreement, officially titled "Ratification of the July 18, 2024, Merger and Investment Agreement between the Hellenic Financial Stability Fund and THRIVEST HOLDING LTD," aims to strengthen the financial stability and competitive position of both banks.

Finance Minister Kostis Hatzidakis expressed satisfaction with the approval, viewing it as a successful effort to enhance the banking sector.

He clarified that the market research conducted by JP Morgan, commissioned by the Hellenic Financial Stability Fund (HFSF), focused solely on Attica Bank, where the HFSF had a shareholder stake, and not on Pancretan Bank.

Supporters of the merger argue that it will create a more resilient banking entity capable of weathering economic uncertainties.

The consolidation is expected to leverage the strengths of both banks, improve customer services, and enhance overall financial health.

However, the unanimous opposition vote highlights significant concerns.

Critics argue that the merger may not address underlying issues within the banks and could potentially serve vested interests rather than the public good. There is also concern that the merger might lead to a concentration of power within the banking sector, reducing competition and limiting consumer choices.

Despite these concerns, the merger marks a pivotal moment for Greece's banking sector.

It has the potential to bolster financial stability and competitiveness, but its long-term impact remains to be seen.

Ensuring transparency and protecting the interests of all stakeholders will be crucial as the merger moves forward.

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