On 20 April, from this very same column, we recorded the information on the forthcoming reform of the Greek banking system with obvious repercussions on the issue of non performing loans (NPLs) and, more generally, in the treatment of undertakings by the systemic banks.
We indicated then that the Hellenic Financial Stability Fund, with the support of Greece’s creditors, has decided to ‘break’ the famous maze of deceit, by cutting ties between top bankers, ministers and powerful business groups, arguing that the aim is to increase the professionalism and to improve corporate governance.
To that end, board members of the 4 systemic banks, National, Piraeus, Eurobank and Alpha Bank were to be evaluated by criteria that essentially lead to choices of individuals from abroad with years of experience in banking institutions.
In short, the whole process would hinder the ability of the Greek government to place its own proteges as bank managers and US company Spencer Stuart was hired as consultant of the new process.
The first such appointment was of Mr. Christos Papadopoulos, a banker with years of experience abroad, for the position of Managing Director of Piraeus Bank. The Hellenic Financial Stability Fund approved his appointment, but the European Single Supervisory Mechanism (SSM), however, at the last moment, vetoed this decision.
SSM’s intervention signals that the so-called reform of the banking system might entail a massacre of Greek enterpreunership. Unfortunately, until now, ‘reforms’ in our country have usually been accompanied by decisions that destroy lives…
