Greek banks Capital One and Capital One AG have announced that they will close on Monday, after weeks of negotiations with their creditors.
The two banks said they will be closing in Athens and the island of Lesbos in a move that would see the two biggest in the country close.
Capital One AG said on Friday it had secured a €1bn ($1.1bn) loan from the European Union to help recapitalise its banking sector and is now looking for private investors.
“This step is a very difficult one, and we will work with the appropriate authorities to make the most of it,” CEO Dimitris Christodoulou said.
Capital one’s last day was scheduled for Saturday, but the two banks have said they have reached an agreement to reopen after negotiations on Monday.
CapitalOne said on its website that the deal would allow it to continue to operate for the next two weeks.
“We are committed to being the best financial institution in Greece and to working together with the government and the country to get Greece back on the road to recovery,” it said.
It said it has set aside €600m for the Greek government, while the bank also set aside an additional €300m for its pension fund.
“Our goal is to return the Greek economy to growth, which we believe is achievable and the people’s desire,” the bank said.
In a separate statement, Capital One said it was considering selling its banking operations in the European country, where it has a large presence.
“The restructuring of the Capital One Group will mean a significant reduction in the capital needs for the bank, which will also mean a decrease in our workforce,” the statement read.
“Capital One Group’s capital needs have not been increased by this restructuring.”
Greek Prime Minister Alexis Tsipras said the government was not prepared to take the step.
“At the moment, I don’t want to take it, and it’s not my decision,” Tsipris told reporters in Athens.
Capital First is Greece’s second-largest lender, with assets of €1.2 trillion and revenues of €2.5 billion.
Its capital requirements are estimated to be about €300bn.
Its parent, Greek National Bank, has been struggling to get a loan from its creditors to recapitalize its banking system.
It is also facing a series of legal actions by creditors demanding it repay about €5bn of the €12bn loan it received in the first half of 2017, the most recent quarter.
Its losses are due to a drop in Greek GDP, the country’s sovereign debt, the euro zone’s debt crisis and its role in a currency swap with Russia.
Capital was also one of the banks hit by a series towing-and-damaging incidents that damaged its business in the Greek island of Leros in July.
The bank said at the time that it would work with creditors to resolve the issues and that it expected a deal to be concluded soon.
It also said it would invest in a new capital investment programme and invest in new products.