Preliminary results of Marfin Popular Bank (MPB) for 2011 show net losses of 2.5 billion euro due to the Greek government bond ‘haircut’ and increased provisions.
A MPB press release issued here on Wednesday states that “full year results include 1.969 m. euro impairment against the Group’s Greek Government Bonds (GGB) holding”.
The Group holds GGBs with a nominal value of 3.052 m. euro.
Following the 2011 impairment provision as a result of the private sector involvement programme (PSI+), the GGBs carrying value has been impaired by 62% and now stands at 38% of their initial book value”, it is noted.
Loan loss provisions amounted to 868 million euro in the fourth quarter of 2011 reaching 1,151 m. euro for the full year 2011, compared to 266 million euro in 2010.