Greece’s ATEBank Considers Good/Bad Bank Split, Imerisia Says

Agricultural Bank of Greece SA may transfer around 7 billion euros ($9.29 billion) of troubled assets to a new company to avoid a recapitalization following a write down of Greek government debt, Imerisia said.

The new asset management company would be controlled and guaranteed by the state and would operate for around 10 years, the Athens-based newspaper said, citing a bank document.

The move, to be proposed after an agreement on a Greek debt swap, would allow the lender to have good asset quality and to become the healthiest Greek bank with no recapitalization needs, seen by the bank at 2.5 billion euros for covering the impact of the debt swap, Imerisia said.

To contact the reporter on this story: Paul Tugwell in Athens at ptugwell1@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net

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