HFSF sees € 15bln losses in 2013
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.