A joint announcement on Thursday by the Greek privatization fund (HFSF) and National Bank of Greece (NBG) cited an agreement by which the former will nominate one new member for the Greek lender's board of directors.
Less than a month after an acrimonious and uncharacteristically public row between NBG's board and the fund, Thursday's agreement stipulates that the new board member will also be elected, "at the latest, until the next annual general meeting of shareholders of the bank."
NBG's board will also be reconstituted by the end of January 2017, according to the press release, a process that affects current members who do not fulfill eligibility criteria under a relevant law associated with the establishment of the Fund -- which is officially called the Hellenic Financial Stability Fund.
The bank, considered by many as Greece's biggest credit institution, also committed to implementing a permanent succession program for the key positions on its board of directors, including the board's chairperson, in accordance with international best practices.
"The agreement is in accordance with the existing Relationship Framework Agreement, the corporate governance rules and the European legal and regulatory framework," the two sides announced.
