HFSF sees € 15bln losses in 2013

Financial Mirror (Cyprus) - - FRONT PAGE -

The Hel­lenic Fi­nan­cial Sta­bil­ity Fund (HFSF) is­sued its 2013 an­nual re­port, which re­vealed that eq­uity stood at EUR 34.42 bln and re­flects the po­ten­tial re­cov­ery value of the orig­i­nal paid-up cap­i­tal of 49.7 bln. The dif­fer­ence of EUR 15.3 bln in the two fig­ures pri­mar­ily stems from the cu­mu­la­tive loss of 11.3 bln re­lated to the res­o­lu­tion of non-core banks and the ac­count­ing im­pact of war­rants at 2.3 bln.

HFSF’s CEO, Anas­ta­sia Sakel­lar­iou, stated that the po­ten­tial re­cov­ery value of EUR 34.42 bln is more than dou­ble com­pared to the ini­tial es­ti­mate of 16 bln in­cor­po­rated in the IMF debt sus­tain­abil­ity anal­y­sis for Greece in March 2012.

The Fund’s eq­uity of EUR 34.42 bln in 2013 dropped by 2.41 bln com­pared to the 36.83 bln posted in 2012. The de­cline re­flects: a) an in­crease in cap­i­tal by 7.2 bln, from the last tranche of EFSF notes HFSF re­ceived at the end of May 2013, bring­ing the to­tal amount to 49.7 bln, and b) a rise in the ac­cu­mu­lated deficit by 9.61 bln, which cor­re­sponds to the Fund’s loss for 2013.

The lat­ter mainly in­cor­po­rates im­pair­ments of in­vest­ments and re­ceiv­ables of EUR 4.16 bln and pro­vi­sion charges for fund­ing gap of 161 mln, as well as a reval­u­a­tion loss of 5.98 bln.

The bulk of the 2013 im­pair­ments stems from Hel­lenic Post­bank (3.35 bln), Probank (434 mln) and FBB (377 mln). The re­spec­tive fig­ure for 2012 amounted to EUR 5.33 bln and is mainly re­lated to the im­pair­ment of HFSF in­vest­ment in New Pro­ton (295 mln) and im­pair­ment loss from the fund’s re­ceiv­ables from banks un­der liq­ui­da­tion mainly ATEbank (4.71 bln) and Pro­ton Bank (244 mln).

The reval­u­a­tion loss of EUR 5.98 bln stems from HFSF share­hold­ings in the four sys­temic banks (3.7 bln) and war­rants (2.28 bln).

In ad­di­tion, the fair value of HFSF share­hold­ing in the four sys­temic banks stood at 22.58 bln at the end of 2013. This fig­ure is vari­able and sub­ject to the banks’ share price move­ments.

HFSF rev­enues in 2013 stood at EUR 278.3 mln, down 69% from the 2012 fig­ure of 898.2 mln.

The daily “Efimerida Syn­tak­ton” in­di­cated on Satur­day that the new Bank of Greece gover­nor Yan­nis Stournaras has pro­posed the ab­sorp­tion of HFSF by the BoG. The press re­port also noted that the govern­ment in co­op­er­a­tion with the troika is pre­par­ing the nec­es­sary amend­ments in the le­gal frame­work.

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