Skip to main content

Greece: The only "public" in banks is the debt that will be loaded on future generations!

by SCH

Neoliberal dictatorship representatives in Greece continue to spread the propaganda concerning the Greek banks. Various mouthpieces continue to propagate the false perception that the Greek banks are, at the moment, under the state control and some of them claim that this is a proof of the Soviet function of the economy!

The mouthpieces propagate that this is the reason for which they must be privatized again, so that the state should not have the responsibility of their recapitalization and relief taxpayers from such an additional load. In reality, the only thing that will change, according to the best scenario, are the names of the private financial institutions and investors that will take control of the so-called "systemic" banks in the future, while the Greek public will be left with an additional debt.

The purely private nature of the Hellenic Financial Stability Fund (HFSF)

From the HFSF website and the Annual Report for the period 21/7/2010 – 31/12/2011:

The Hellenic Financial Stability Fund (hereinafter the “Fund” or “HFSF”) was founded in July 2010 (under Law 3864/2010) as a private legal entity and does not belong to the public sector. It has administrative and financial autonomy, operates exclusively under the rules of the private economy and is governed by the provisions of the founding law as applicable. In addition, the provisions of company law 2190/1920 are applied as in force, provided they are not contrary to the provisions and the objectives of the founding law of the Fund. The purely private nature of the Fund is neither affected by its entire capital being subscribed by the Greek government, nor by the issuance of the relevant decisions by the Minister of Finance.

In addition, the Fund may provide guarantees to states, international organizations or other beneficiaries and in general may take any action necessary for implementing the decisions made by the bodies of the eurozone with a view to supporting the Greek economy.

Funds for the HFSF

Under the title “Post Balance Sheet Events”, p. 5-6:

On 15/03/2012 The European Financial Stability Facility (hereinafter EFSF), the Greek State, the Fund and the BoG, signed the “Master Financial Assistance Facility Agreement” amounting to a total of € 109 billion and the Fund guarantees on behalf of the Greek State the amount which will be used for the recapitalization of the credit institutions. On 17/04/2012 the Fund signed with the Greek State and the BoG the Acceptance Notice for the deposit EFSF bonds into the Fund’s account amounting to a total of € 25 billion, which pertain to the recapitalization and revitalization of the credit institutions. The Fund’s share capital as of the financial statements’ approval date stood at € 26.5 billion (€ 1.5 billion in initial capital and € 25 billion from an additional capital increase on 19/04/2012). The capital increase took place with the contribution of floating rate notes (FRNs) issued by the EFSF.

Under the title “Prospects”, p.6:

In the following months, it is anticipated that the banks’ recapitalisation will start and will also be the Fund’s main activity for 2012. In order to respond to the capital requirements, the Fund has been reinforced with capital amounting to € 25 billion and is expected to be further enhanced (total authorized capital: € 50 billion), in the context of the loan agreement signed between the HFSF and the Republic of Greece.

Also, according to the “Note 10”, p.29:

The authorised share capital, according to amended L. 3864/10, amounts to € 50 billion resulting from funds which will be raised as part of the mechanism put in place by the European Union and the IMF to support Greece according to L. 3845/2010, and which will be gradually covered from the Greek government and included in non-transferable titles until the expiry of the HFSF. As of 31/12/2011 the paid in share capital totaled € 1.5 billion.

Participation of the HFSF to the Greek “systemic” banks

From the Annual Report for the period 1/1/2012 – 31/12/2012:

In the context of the settlement of the recapitalization, Piraeus Bank returned EFSF FRNs of nominal amount € 499.5m to the HFSF while following the delivery of 4,109,040,164 common registered shares the HFSF’s shareholding in Piraeus Bank reached 81.01%.

Given that the EFSF FRNs already held by Alpha Bank as an advance for its capital increase amounted to € 2,942.0m (nominal amount) the HFSF contributed additional EFSF FRNs of a nominal amount totaling € 1,018.5m. Therefore the total nominal amount of EFSF FRNs given to Alpha Bank were € 3,960.5 and their fair value as of 30/05/2013 was € 4,021.0m. Following the delivery of 9,138,636,364 common registered shares to the HFSF, its shareholding in Alpha Bank stands at 83.70%.

Based on the subscription in cash which reached € 1,079.1m (11% of total) and the fair value of the EFSF FRNs already contributed, NBG returned to the HFSF EFSF FRNs of nominal amount of € 1,291.7m. Following the delivery of 2,022,579,237 common registered shares to the HFSF, its shareholding in NBG stands at 84.39%.

Following the fair valuation performed on the contributed EFSF FRNs, Eurobank returned to the Fund EFSF FRNs with a nominal amount of € 113.2m. Following the delivery of Eurobank’s shares to the HFSF (3,789,317,358 common registered shares), the HFSF’s shareholding in Eurobank stood at 98.56%.

According to the Piraeus bank website, the HFSF held 81% of the outstanding common shares on September 30, 2013, while the Greek Public does not appear anywhere in the shareholder structure of the bank.

According to the Alpha bank website, the HFSF holds 8,925,267,781 common, registered, voting, dematerialized shares, which correspond to 81.71% of the total number of voting shares of the bank on Dec. 31, 2013, while the Greek Public does not appear anywhere in the shareholder structure of the bank.

According to the National Bank of Greece website, on June 30, 2013 shareholders structure, HFSF held 84.4% of the shares while 1% held by “domestic pension funds” and 1.7% by “domestic private and public sector companies”.

According to the Eurobank website, on Nov. 14, 2013, the participation of the HFSF to the bank was 95.2%.

 

BoD composition of the “systemic” banks


Piraeus Bank: 12 of the 16 members of the current board, among them chairman Michael Sallas, were also members since 09/02/11, thus quite long before HFSF participation to the bank. There are two representatives from the HFSF and only one from the Greek Public who, according to the bank's website, are not considered members of the board.

Alpha Bank: All members of the current board, among them chairman Yannis Costopoulos, were also members long before HFSF participation to the bank. There is one representative from the HFSF and only one from the Greek Public.

National Bank of Greece: 8 of the 13 members of the current board, were members long before HFSF participation to the bank, while it is not clear whether the rest 5 members since 2012, among them chairman George Zanias, had become members before or after HFSF participation. There is one representative of the HFSF and only one from the Greek Public.

Eurobank: A new BoD was appointed by the HFSF General Council following a selection process held by an international HR consultant. However, 6 from the 9 members of the new board were also members of the previous BoD consisted of 18 members. There is one representative of the HFSF and only one from the Greek Public.

Conclusions

From the information above, the conclusions are:

  • Most executives of the four “systemic” banks are still members of the boards after the HFSF participation, despite that the Fund holds now the significantly higher percentage of the shares in all of them.
  • Concerning the four “systemic banks”, a new BoD was appointed by the HFSF only in the case of Eurobank at the time where the Fund held 98.56% (now 95.2%) of the shares.
  • HFSF itself is a purely private institution in which the Greek Public has no power.
  • Greek Public's presence in the shareholder composition of the four “systemic” banks is minimal or zero.
  • Greek Public's presence in the BoDs of the four “systemic” banks through representatives is minimal.

It is proven that, the only "public" in the Greek banks are the guarantees by the Greek Public for their recapitalization. This means that, despite that the Greek Public has no power on banks' decisions and their investment choices, it will be called to pay the interest for the loans in the context of the loan agreement between Troika lenders and Greece.

It also means that, no one is able to protect the Greek Public from an additional damage in case that HFSF sell its shares to other banks or investors after a possible share-price significant fall.

It also means that, no one can guarantee deposits, especially after the decisions of the recent EU Summit and ECOFIN for the bail-in, while in case of a new banking crisis, HFSF will suffer significant damage - in case that will still hold the largest part of the banks' shares - because according to the bail-in "rules", shareholders must also participate in the bank rescue. Therefore, according to the best scenario, the Greek Public, as guarantor of the HFSF, will be forced to sign a new loan agreement to cover additional damage thus loaded with additional debt.

So finally, the only "public" in Greek banks is the debt that will be loaded on future generations!

Sources:










Comments

Popular posts from this blog

Neoliberal fascists continue the purge of the real Left and give us a small taste of what will happen under a Biden presidency

globinfo freexchange At about the time we were writing the article The time has come for neoliberalism to expose its true nature as a kind of refined fascism , the neoliberal regime did everything it could to justify us.  As the liberal elites proceed with the establishment of an increasingly authoritarian system to protect neoliberal order, the purge of real Leftists from key positions should be expected and considered almost certain.   Latest victims of the purge are two important figures in politics and journalism: Jeremy Corbyn and Glenn Greenwald.    The level of neoliberal Blairite evilness in the Labour Party hit a new record. In an unprecedented move, the new leadership decided to get rid of Jeremy Corbyn. In a fascistic manner, the Blairite faction wasted no time and took advantage of the EHRC report to do what it had in mind in the first place: get rid of the party's Leftist faction once and for all.   And all this, despite the fact that Corbyn repeatedly appeared to be

The time has come for neoliberalism to expose its true nature as a kind of refined fascism

globinfo freexchange In an interesting interview, Afshin Rattansi spoke with William Robinson, author of The Global Police State . They discussed how capitalism's crises have fuelled the rise of the global police state. The drastic inequality and poverty that has become a theme of modern capitalism which necessitates the global police state. Also, whether there is class warfare on the poor and the growing industry of militarism and oppression.   As Robinson points out: The global police state has been on full display in the United States in the uprising that took place in the aftermath of the murder of George Floyd. But the largest story here, of course, is the mega cities of the world. Not just the hot war zones such as in the middle east.     The mega cities of the world are now the theaters for this global police state. And it's where these inequalities are so incredibly acute. And so all of the panoply of what i'm referring to as global police state is unle

Liberal plutocrats win a critical battle with their Biden puppet in the capitalist civil war and Trump keeps helping them

globinfo freexchange The globalist faction of the US capital (primarily consisted by the liberal plutocracy ) had the chance to counterattack against the capitalists around Trump through Biden's recent victory, in the ongoing capitalist civil war .   Yet, despite the fact that Trump brought some serious trouble to the liberal capitalists, ironically, he came right on time to rescue them. He helped them escape from the dead end, after eight years of an utterly disappointing Obama administration.  At the time when the liberal capitalists ran out of tricks (and social movements were pushing for real change in the US), Trump came to their rescue. Suddenly, the Obama fraud was almost forgotten and all the progressives had to align with the liberal fraudsters in order to defeat the "creepy orange clown". After four years of anti-Trump liberal hysteria and a pandemic nightmare that also came right on time, the liberal capitalists managed to put another puppet in power. And they

Συνεχίζονται οι επιχειρήσεις προπαγάνδας και αποπροσανατολισμού της μιντιακής χούντας εν μέσω πανδημίας

του system failure   Είναι ξεκάθαρο, πλέον, ότι η κυβέρνηση Μητσοτάκη έχει χάσει τον έλεγχο στο μέτωπο της καταπολέμησης της πανδημίας. Και το χειρότερο είναι ότι ο έλεγχος έχει χαθεί όχι τόσο λόγω ανικανότητας, αλλά περισσότερο λόγω αναλγησίας και ιδεολογικού φανατισμού που χαρακτηρίζει τα περισσότερα μέλη της. Είχαμε ήδη επισημάνει από τον Μάρτιο ότι οι κυβερνώντες παίζουν κρυφτούλι και δείχνουν απρόθυμοι να κάνουν τις απαραίτητες προσλήψεις για να ενισχύσουν τα δημόσια νοσοκομεία. Αλλά και τα γνωστά "παπαγαλάκια", εν μέσω τέτοιας υγειονομικής κρίσης, δεν σταματούν ούτε στιγμή να λοιδορούν με άφθονη προπαγάνδα το Εθνικό Σύστημα Υγείας.   Όπως είχαμε επίσης επισημάνει, είναι φανερό ότι η κυβέρνηση Μητσοτάκη έχει ρίξει όλο το βάρος στα αυστηρά μέτρα περιορισμού, ώστε να μην αναγκαστεί να κάνει το αυτονόητο: να ενισχύσει αποφασιστικά τα δημόσια νοσοκομεία με ιατρικό προσωπικό και εξοπλισμό.    Την ίδια στιγμή, η μιντιακή χούντα, που στηρίζει με νύχια και με δόντια το κα

Jeremy Corbyn’s Labour Party suspension is about crushing the Left

Keir Starmer’s baseless decision to suspend former Labour Party leader Jeremy Corbyn is a transparent attack on the Left. Labour members must fight it, or everything Corbyn stood for will depart with him.   by Ronan Burtenshaw   Yesterday, the EHRC report into Labour’s antisemitism controversy was released. Contrary to the doomsday predictions on both sides — that it would label the party institutionally antisemitic or personally indict Jeremy Corbyn and his team — it was a sober and earnest document that focused on procedural issues. By lunchtime, it seemed likely it would be broadly accepted across the Labour Party. The report found that Labour’s processes for handling antisemitism complaints were lacking. Its structures were too weak, they were subject to political pressures, under-resourced, and lacked proper guidance. Its staff had not had access to appropriate training. The most damning finding — of harassment — related to two cases where representatives of the party, former mayo

Confirmed: Biden never wanted the Green New Deal and now he has a perfect excuse to bury it

globinfo freexchange   In a revealing interview for the Greek radio-station Radio 98.4 , former Greek Minister of Finance and current DiEM25 leader, Yanis Varoufakis, spoke about the current situation in Greece under COVID-19 pandemic, as well as the result of the recent US general election.  The current Greek government ( one of the worst the last decades as it seems), receives a lot of negative criticism from the opposition and from the independent press in Greece, for the fact that it didn't take advantage of the first lock-down to reinforce Greece's public healthcare system.   It seems that during this second wave of the pandemic (and the second lock-down), the Greek government is losing control as the COVID-19 cases rise dramatically and the public healthcare system now operates close to its limits. Mitsotakis administration receives negative criticism for the fact it left the tourism sector open during the summer to protect specific private interests. Most importantly,

Η έξαρση της πανδημίας επισπεύδει την καταστροφή που φέρνει το Μητσοτακικό καθεστώς

globinfo freexchange Φαίνεται, δυστυχώς, ότι για άλλη μια φορά είχαμε δίκιο, καθώς αυτή η επιεικώς απαράδεκτη κυβέρνηση κάνει ότι μπορεί για να μας επιβεβαιώσει.   Γνωρίζαμε ότι η φράξια των νεοφιλελεύθερων τζιχαντιστών του Μητσοτακικού καθεστώτος είχε ως κεντρική αποστολή να ξεπουλήσει τα πάντα και να ιδιωτικοποιήσει το Εθνικό Σύστημα Υγείας. Δεν μπορούσαμε όμως να φανταστούμε, ότι οι φανατικοί του Μητσοτάκη θα έφταναν σε τέτοιο σημείο, ώστε όχι μόνο να εμπαίζουν πολίτες, γιατρούς και νοσηλευτικό προσωπικό, αλλά και να βρίσκουν μιας πρώτης τάξεως ευκαιρία, με αφορμή την κρίση, να συρρικνώσουν, αντί να στελεχώσουν το ΕΣΥ!   Αυτά τα γράφαμε τον Μάρτιο και κατά τη διάρκεια του πρώτου κύματος της πανδημίας, όπου το νοσοκομείο Καστοριάς, μιας περιοχής που είχε πληγεί ιδιαίτερα και τότε από την πανδημία, δοκιμάστηκε σκληρά από την αναλγησία και απροθυμία των κυβερνώντων να το ενισχύσουν ουσιαστικά.   Όπως είχαμε αναφέρει, οι ανεκδιήγητοι του Μητσοτάκη, όχι μόνο αρνήθηκαν να ενισχύσου

Media responds with apathy, disappointment as US-backed coup Gov’t concedes defeat in Bolivia

Across the spectrum, corporate media has endorsed last year’s rightwing takeover of Bolivia, refusing to label it as a coup. Coverage of Sunday’s historical elections hasn’t been much better.   by Alan Macleod    Part 2 - Media disappointment at return of democracy Across the spectrum, corporate media endorsed the events of November, refusing to label them a coup. The New York Times editorial board claimed that the “ increasingly autocratic ” tyrant Morales had actually “ resigned, ” after “ protests ” over a “ highly fishy vote. ”  The Washington Post did the same. “ There can be little doubt who was responsible for the chaos: newly resigned president Evo Morales, ” their editorial board wrote, as they expressed their relief that Bolivia was finally in the hands of “ more responsible leaders ” like Añez, (who, at the time, was giving security forces orders to shoot her opponents in the streets).    Despite this, The Wall Street Journal ’s board decided the events of November constit

Why is the World going to Hell?

by Jonathan Cook   Part 5 - Our mental black boxes   The third chapter gets to the nub of the problem without indicating exactly what that nub is. That is because The Social Dilemma cannot properly draw from its already faulty premises the necessary conclusion to indict a system in which the Netflix corporation that funded the documentary and is televising it is so deeply embedded itself. For all its heart-on-its-sleeve anxieties about the “existential threat” we face as a species, The Social Dilemma is strangely quiet about what needs to change – aside from limiting our kids’ exposure to Youtube and Facebook. It is a deflating ending to the rollercoaster ride that preceded it. Here I want to backtrack a little. The film’s first chapter makes it sound as though social media’s rewiring of our brains to sell us advertising is something entirely new. The second chapter treats our society’s growing loss of empathy, and the rapid rise in an individualistic narcissism, as something entirely

The Andrew Yang corporate media blackout: more evidence that the liberal elites hand-picked their unpopular puppet Kamala Harris

globinfo freexchange A former MSNBC whistleblower gave recently another first-hand confirmation about what many of us already knew: that the corporate media systematically exercise extreme forms of censorship on candidates outside the two-party system norm. As Ariana Pekary tweeted recently:                          On 4/25/19, I was told that we were never to pursue Andrew [Yang] for an interview on our show (along with several others). The list of candidates was dictated, but the reasons for allowing them or not were not explained.     Actually, I just reviewed my journal. On 4/25/19, I was told that we were never to pursue Andrew for an interview on our show (along with several others). The list of candidates was dictated, but the reasons for allowing them or not were not explained. — Ariana Pekary (@arianapekary) November 22, 2020   It would be interesting to also learn who these "several others" (Pekary mentioned in her tweet) are, but her revelation still has some sig