Following the corporate announcements issued by Alpha Bank, Eurobank EFG notes the following:
The argumentation used by Alpha Bank in its attempt to justify the breach of its contractual obligations is completely unfounded. Alpha Bank's decision to unilaterally reverse the merger procedure of the two Banks, a procedure that has already been approved by the General Meetings of our respective Shareholders and ratified by the relevant Greek authorities, constitutes the only breach of contractual obligations that has taken place.
The level of losses incurred as a result of the PSI+ does not impact in any way the substantial benefits of the merger, which have been also acknowledged by Alpha Bank. On the contrary, these benefits would mitigate the impact of the PSI+, the exact amount of which is expected to be disclosed shortly.
The cancellation of a merger of this scale, not only leads to substantial loss of value for the shareholders of the two banks, but it is also incompatible with the intended recapitalization of the Greek banking system and the preservation of its private sector character. Moreover, it undermines the country’s efforts to exit the current crisis and return to a growth path.