Bank of Greece to Shut Down another Greek Insurer (?)

Bank of Greece to Shut Down another Greek Insurer (?)

Diethnis Enosis AAE requested deadline extension for the increase of share capital up until 15 July, from the Bank of Greece. The request was accepted by the Private Insurance Supervisory Committee (PISC), which at the same time, within the framework of legislation and based on the data it already owns, has taken a series of parallel measures.

Until the company proceeds in increasing its share capital, PISC ruled to hold the company under a series of actions. In detail, PISC ruled the following:

A)  The company to revoke its operations on all insurance sectors and not to proceed in any alterations on former policies.

Β) The total of  the company’s free property assets to be bound.

C) An email detailing its financial condition during the past 6months to be issued.

According to sources, the company is aware of the above procedure, since it instigated the request, and races to cover its financial “opening”.  It is reminded that the amount required for the completion of the share capital increase amounts to 8million euros. According to legislation, the capital needed to cover its level of solvency reserve, amounts to €6,424,000.

It should be noted that this procedure has been implemented in the past in other insurers that faced similar challenges, with the usual outcome being to cease their operations.

Click here for the Greek article.

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