Greece's Alpha Bank freezes merger talks with EurobankJanuary 30, 2012 - 23:18 AMT PanARMENIAN.Net - Greece's Alpha Bank on Monday, Jan 30, froze merger talks with Eurobank pending the conclusion of tough negotiations between the government and private creditors on a huge sovereign debt write-down. "The bank intends to await the finalization of the terms of the (debt write-down) and shall then convene the bank’s general meeting of shareholders, so that the latter can be duly informed and resolve upon (the course to follow) accordingly," Alpha Bank said in a statement. The bank added that the attempted bond swap, designed to erase around 100 billion euros ($132 billion) from Greek debt held by private creditors globally, was expected to affect it and Eurobank in a "disproportionate" manner. Last year, Alpha Bank posted a nine-month net loss of 566.7 million euros after writing off 608.1 million euros in Greek sovereign debt. Alpha Bank noted that the intended merger approved by Alpha Bank and Eurobank shareholder meetings in November had been premised on a milder debt write-down agreed by the eurozone in July that called on banks to accept a 21-percent loss. A follow-up agreement in October increased the debt write-down to 50 percent in order to make Greek repayments more sustainable. The merger plan, originally slated for completion in December, was designed to create Greece's largest lender with major backing from a Qatari investment fund. The Athens stock exchange earlier on Monday ordered a temporary suspension of trade in Alpha Bank and Eurobank shares on uncertainty that the planned merger between the two prominent lenders can be completed. Alpha Bank earlier on Monday said it could not inform investors when the deal would be sealed, with negotiations between Greece and the International Institute of Finance, a global bank lobby group, ongoing from November, AFP reported. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Macron says France commemorates 109th anniv. of Armenian genocide Today France commemorates the 109th anniversary of the Armenian genocide of 1915, Macron says. Freedom House concerned by mounting reports of police violence in Armenia Freedom House urged Armenian authorities to investigate this pattern of excessive force and inhumane treatment. CSTO recognizes Armenia’s sovereign right to withdraw Tasmagambetov has said that if Armenia decides to leave the organization, “it will be the sovereign right of Armenia.” Ex-President: Only removal of “defeatist” rulers can save Armenia Former Armenian President Serzh Sargsyan has shared a message on the 109th anniversary of the Armenian Genocide. |