Thursday May 7, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Banks to trim assets, especially abroad, to boost capital bases

By Yiannis Papadoyiannis

The European Commission’s restructuring plans for Greek banks provide for a drastic scaling back of their activities abroad as well as reductions in the number of branches and staff at home.

The plans for banks National (NBG) and Piraeus were given the green light late last month, following those for Alpha in early July and Eurobank in April.

According to the blueprint, National Bank will retain a presence in neighboring Turkey by retaining majority control of Finansbank, but will have to withdraw from all other countries in Southeast Europe. By June 2018 it has to sell its subsidiaries in Albania, Bulgaria, the Former Yugoslav Republic of Macedonia, Romania, Serbia, South Africa and the branches it operates in Egypt. It will however be allowed to keep some branches in Cyprus, the UK and Malta. As regards Finansbank, it will have to proceed to an increase of at least 20 percent of its existing capital, while NBG has pledged to sell 20 percent of its Finansbank holding. It has also agreed with the Commission that its branch network in Greece will be shrunk to 550 and the number of employees reduced to 10,700 while the loans to deposits ratio will not exceed 115 percent by end-2017.

Piraeus Bank’s restructuring plan provides for a maximum of 870 branches and no more than 15,350 employees by the end of 2017. The plan also includes a drastic cutback in activities abroad. The value of its foreign assets will either have to be reduced to 3.1 billion euros by June 2018 or they will have to be sold altogether except certain combinations (Cyprus-Romania, Cyprus-Bulgaria, or Bulgaria-Albania-Serbia).

The other two big systemic banks, Alpha and Eurobank, have agreed to similar moves. Besides reducing the number of branches and employees, further goals include cuts in the cost of operations and deposits and the sale of subsidiaries such as insurance, real estate and investment arms. The moves are intended to boost their capital bases and limit dependence for liquidity and capital on the state.

Sources say the Bank of Greece has ruled out the idea of one so-called bad bank to take the bad loans of all commercial banks, and each lender will handle its own through special departments they have already created. The government’s planned changes and actions are focused on bankruptcy law, which will help with the restructuring of problematic enterprises.

ekathimerini.com , Monday August 11, 2014 (21:29)  
Minimum wage is not enough
Gov’t awaits US alternative gas proposal
Luxury tax hike may fetch nothing
PM concession keeps ELA alive
SYRIZA to start mulling position on possible deal
SYRIZA’s political secretariat is due to meet on Friday as the party begins deliberating the concessions set to be made by the Greek government to its lenders. The meeting will take place am...
Prosecutor wants to see 40 defendants take the stand in Postbank loan trial
A prosecutor on Wednesday recommended that 40 people stand trial in connection to the alleged unsecured loans scandal at Hellenic Postbank (TT). Prosecutor Maria Soukara-Katsikadi said she f...
Inside News
SOCCER
UEFA concern over Greek soccer violence bill
Greece provoked fresh concern from European soccer's governing body UEFA on Wednesday over governmental interference which could lead to the Euro 2004 winners' international suspension. UEFA...
SOCCER
Greece set to escape ban as sports law goes to parliament
Greek soccer is set to breathe a sigh of relief as the country's controversial new sports law was submitted to parliament on Wednesday with the necessary amendments to avoid a FIFA and UEFA ...
Inside Sports
COMMENTARY
Greece´s ´Blazing Saddles´ strategy isn´t working
There's a scene in the 1974 Mel Brooks movie "Blazing Saddles" where the besieged sheriff points a gun at his own head and threatens to shoot himself if the townspeople threatening to kill h...
COMMENTARY
A ‘logical’ scenario vs historical accidents
The country has reached a point where there is only one “logical” scenario left. By now, Prime Minister Alexis Tsipras understands very well the meaning of bankruptcy, a credit event and a G...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Minimum wage is not enough
2. Gov’t awaits US alternative gas proposal
3. Luxury tax hike may fetch nothing
4. PM concession keeps ELA alive
5. Greek hotel rates return to pre-crisis levels
6. SYRIZA to start mulling position on possible deal
more news
Today
This Week
1. A ‘logical’ scenario vs historical accidents
2. Greece's 'Blazing Saddles' strategy isn't working
3. Greece said to have made 200 mln euro IMF payment due Wednesday
4. Mardas denies report he transferred cash abroad after joining gov't
5. Defense minister offers to bolster NATO, help fight against terrorism
6. Inexplicable decision
Today
This Week
1. Greece’s decade-long relationship with Merkel
2. Greek decision to exit euro would be disastrous for Greece
3. No need to widen the rift
4. Varoufakis attacked by anarchists while dining in Athens
5. Empty admissions of fault
6. Majority sees Greece headed for euro exit in Bloomberg user poll
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.