By A. Doga
This week’s tenuous compromise for a new board of directors and top leadership the National Bank of Greece (NBG) has apparently not normalized relations between the Hellenic Financial Stability Fund (HFSF), the primary shareholder of the previously recapitalized credit institution, and the new board.
The HFSF this week announced that it was “contemplating” the convening of an extraordinary general shareholders’ assembly – where it would enjoy a prevalent influence – a prospect that remained “on the table” even after Wednesday’s compromise.
NBG on Wednesday evening announced the appointment of veteran banking executive Panayiotis Thomopoulos as its new chairman, without however, the support of HFSF.
Afterwards, Thomopoulos and Leonidas Fragiadakis, who was tapped as the new CEO, referred to the need for “close and good cooperation with HFSF”.
The independent fund was created 2010 in the wake of the first bailout memorandum and operates within a private sector framework to ensure stability and transparency in the Greek banking system, particularly the four systemic banks that have been successively recapitalized with a significant contribution by Euro area monetary institutions.
Thomopoulos and Fragiadakis had been the previous candidates put forth by NBG’s board, with HFSF expressing its opposition. Both men also made immediate statements on Wednesday evening promising to cooperate fully with HFSF.
HFSF’s general council had dangled the threat of a shareholders’ general assembly earlier in the week, a venue where, ostensibly, it would have proposed its own candidates for a new NBG board and leadership.
As “N” reported, however, the compromise option won out in the end, although the HFSF’s threat is standing and will depend, as it announced, on the smooth cooperation between the two sides (HFSF and the new NBG board).
