June 22, 2010
400 million euro write-down from Emporiki
From Bloomberg: Emporiki bank stake holder Agricole SA to take $490 (USD) write-down
"Credit Agricole SA, France’s largest bank by branches, said it will take a 400 million-euro ($490 million) writedown on its stake in Emporiki Bank of Greece SA as it expects higher losses at the unit this year.
The lender will book the writedown in the earnings period ending June 30, the Paris-based company said in a statement today. Emporiki’s estimated 2010 after-tax losses may reach about 750 million euros, more than twice as much as estimated in October, according to a presentation on the bank’s website.
“Credit Agricole will support Emporiki,” the lender said, adding that the Greek unit has “good dynamics” in operating profit. Emporiki may get a “potential punctual Tier 1 requirement of approximately 550 million euros” by the end of 2011, it said.
The European Union and the International Monetary Fund agreed on May 2 to provide 110 billion euros in emergency loans to Greece, which is struggling to cut a deficit that swelled to 13.6 percent, more than four times the EU limit. French banks have claims on Greece of $78.8 billion, most than any other country, according to the Bank for International Settlements.
Emporiki, which had a net loss of 583 million euros in 2009, expects to return to profit in 2012, Credit Agricole said."
Greece's Golden Visa program
