Non-systemic Attica Bank is awaiting approval by the EU Commission’s relevant competition authority (DG Comp) for a structuring and recapitalization plan.
Moreover, a capital share increase is linked with a forthcoming contract towards a strategic investor, with the latter awarded the management of an Attica Bank bad debt portfolio worth roughly 1.25 billion euros.
A drafted restructuring plan includes a reduction in the small Athens-based lender’s operational costs, including a voluntary retirement package aiming to attract 85 people on the current payroll. A renegotiation of the current labor contract is also envisioned, along with a restructuring of Attica Bank’s subsidiaries, which could include sell-offs.
Meanwhile, reshuffling of the board of directors at Greece’s four systemic banks continues, as per corporate governance provisions demanded by the Single Supervisory Mechanism (SSM) and the Hellenic Financial Stability Fund (HFSF) for Greece’s banking sector.
Greek bank managements will continue to come under European scrutiny over the coming months, as boards are now replete with non-Greek nationals serving as non-executive board members.
HFSF has already demanded implementation of the law in order to replace Lucrezia Reichlin from the board of Eurobank, regardless of the fact that the veteran banking executive also serves on the board of Unicredito and features an impressive resume in the sector. Nevertheless, the specific law to determine eligibility for systemic banks’ board of director positions apparently does not recognize Reichlin’s tenure at the European Central Bank (ECB).
Another boardroom change means the replacement of Alexander Blades on Piraeus Bank’s board. Blades is the representative of US billionaire hedge fund manager John Paulson. In fact, Paulson himself is not eligible for a board seat under the strict provisions in the relevant legislation.
Another Paulson representative is expected to fill the position and have an opinion on the appointment of a new Piraeus Bank CEO, a development expected to come in March.
A third change marks a milestone for banks’ relations with the once powerful union (OTOE) representing employees in the sector, as union representation on National Bank of Greece’s board is due to end. OTOE representative Efthymios Katsikas has already departed from NBG’s board and has been replaced by Eva Cederbalk, with the upcoming reshuffle set to also replace OTOE president Stavros Koukos, who up until recently served on the board.
Despite the public support extended by NBG’s management for the continued union representation on its board, the legal framework is strictly defined and unbending. Recent pressure by the unionists towards the SSM to relax the provisions in order to allow union representation have so far yielded no result.
