Alpha Bank avoids nationalization

Greece's Alpha Bank said Monday it had raised enough private capital through its recent rights issue to maintain management control, making it the first Greek bank to avoid complete nationalization during an ongoing recapitalization of Greek banks.

- Alpha Bank is the first among the Greek banks to meet successfully the required private sector contribution test by raising more than 10% of its total recapitalization amount, of EUR4.57 billion, from private investors - Alpha said in a statement.

Greece's banks are facing billions of euros in losses after Athens last year completed a EUR206 billion sovereign debt restructuring aimed at halving the stock of debt the country owes private creditors. Banks have also suffered from rising bad loans at a time when the recession-ravaged Greek economy is in a sixth straight year of contraction.

Under the terms of the recapitalization plan, the banks have to secure a minimum of 10% of their capital needs from the private sector to maintain management autonomy and retain their private character.

- We are delighted to be the first Greek Bank to meet successfully the Private Sector Contribution in the context of the recapitalization of the Greek banking sector - said Alpha Bank Chairman Yannis Costopoulos.

- The recapitalization of Alpha Bank is a vote of confidence in the prospects of the Greek banking system and the Greek economy overall and paves the way for the country to return to the international markets - he added.