Eurobank to use merger to tackle €7bn of NPLs
A tie-up with real estate firm Grivalia will allow Eurobank to accelerate the reduction of its non-performing exposures, the Greek lender said on Monday. The country’s banks normally face equity dilution from writing down bad loans, under a law relating to deferred tax credits (DTCs), but Eurobank has found a structural way to get around that.
The proposed strategy will make Eurobank the best-capitalised bank in Greece and allow it to meet its NPL reduction plan two years ahead of schedule, the bank said, as it announced the merger with Grivalia on Monday morning.The resulting entity “will be the undisputed leader in the ...
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