HFSF seeks way out of NBG fix

HFSF seeks way out of NBG fix

The National Bank of Greece board meeting interrupted last week upon the demand of major shareholder the Hellenic Financial Stability Fund due to a clash over the election of a new president is scheduled to resume on Wednesday.

On Tuesday the HFSF reconvened on the issue in an effort to find a solution. Sources said that the representative of the Bank of Greece insisted that tensions need to ease to contain the problem in the sector, but many HFSF members stressed that someone must take responsibility for the situation created.

Kathimerini understands there are three solutions under consideration. The first – and mildest – one is for the defusion of tension without any resignations from the NBG board, though that would expand the problem. The second provides for National’s chief executive Leonidas Fragkiadakis to quit, but this also entails complications as finding a replacement would take time and the completion of administrative changes is a milestone for the second bailout review.

The last option is the most aggressive, as in the case that Fragkiadakis does not resign the HFSF will call an extraordinary general meeting of the bank asking for the replacement of most board members – an option the central bank opposes.

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