Georgakopoulos said the bank is covered even in the adverse scenario considering the bank’s planned restructuring plan.
Georgakopoulos said that after a EUR2.9 billion capital raise, EFG has additional capital of EUR582 million, higher than the minimum required 8%, while the ECB stress test sees a capital shortfall of EUR1.76 billion.
EFG reached agreement with the ECB and the European Union earlier this year to implement restructuring plans, following which the lender’s required capital will drop considerably, resulting in a surplus of EUR2.4 billion in a basic macroeconomic scenario, or a deficit of just EUR18 million in an adverse scenario.
“As the Greek central bank said in a release on its website, Eurobank doesn’t in fact require additional capital, even though stress tests using figures from the end of last year suggest it does, because meanwhile there has been a capital injection of EUR2.9 billion,” Georgakopoulos explained.
Georgakopoulos added the restructuring plan does not include sale of assets and EFG has no plan to sell its Romanian subsidiary. However, Georgakopoulos did not rule out the sale of Bancpost in the following years.