MARFIN POPULAR BANK HAS SUBMITTED TO THE CENTRAL BANK OF CYPRUS

ITS COMPREHENSIVE PLAN FOR DECISIVE CAPITAL ENHANCEMENT

Marfin Popular Bank announces that it has concluded the process of devising its capital enhancement plan as per related regulatory requirements of the Central Bank of Cyprus and the recent directive from the European Banking Association.

The plan aims to address the Group's capital needs given the benchmark 9% Core Tier1 Capital Ratio set by the European Banking Association and was presented to the Marfin Popular Bank Board of Directors and was approved for submission to the Central Bank of Cyprus.  

J.P. Morgan Limited and Houlihan Lokey act as financial advisers to Marfin Popular Bank in relation to the capital plan.

Statement by the Chairman of the Board of Directors, Mr Michalis Sarris:

 “In a rapidly changing financial environment and in the light of the deliberations in progress for the participation of the Private Sector Industry in the restructuring of Greece's public debt, the European Banks are called upon to prepare capital enhancement plans with a target to effect compliance with the increased regulatory Core Tier 1 capital requirements by 30.06.2012

Marfin Popular Bank has pursued to structure a comprehensive capital enhancement plan which combines focused management actions as well as capital raising initiatives aspiring to shield and enhance resilience of the Group given the ongoing market developments.

 To this end, the Group has appointed a dedicated team under the Group Chief Executive Officer, to exclusively engage in a comprehensive Risk Weighted Asset mitigation and capital enhancing actions across all geographical areas.” 

 Statement by the Group Chief Executive Officer, Mr Christos Stylianides:

“Marfin Popular Bank, assisted by internationally renowned specialist houses, thoroughly considered all the pillars of its capital structure and has derived a comprehensive plan based on conservative assumptions which will decisively enhance and strengthen the Groups' capital base.

We are collaborating with the Central Bank of Cyprus, currently reviewing the capital plans submitted by the Cypriot Banks, to refine, should it be considered necessary the plan to be submitted to the European Banking Association.

 Management is committed to materialise specific additional actions which will deliver supplementary upside and further ring-fence the Group in light of market developments.”