HFSF seeks way out of NBG fix

Kathimerini English - - Focus - YIAN­NIS PAPADOYIANNIS

The Na­tional Bank of Greece board meet­ing in­ter­rupted last week upon the de­mand of ma­jor shareholder the Hel­lenic Fi­nan­cial Sta­bil­ity Fund due to a clash over the elec­tion of a new pres­i­dent is sched­uled to re­sume to­day.

Yes­ter­day the HFSF re­con­vened on the is­sue in an ef­fort to find a so­lu­tion. Sources said that the rep­re­sen­ta­tive of the Bank of Greece in­sisted that ten­sions need to ease to con­tain the prob­lem in the sec­tor, but many HFSF mem­bers stressed that some­one must take re­spon­si­bil­ity for the sit­u­a­tion cre­ated.

Kathimerini un­der­stands there are three so­lu­tions un­der con­sid­er­a­tion. The first – and mildest – one is for the de­fu­sion of ten­sion with­out any res­ig­na­tions from the NBG board, though that would ex­pand the prob­lem. The sec­ond pro­vides for Na­tional’s chief ex­ec­u­tive Leonidas Fragki­adakis to quit, but this also en­tails com­pli­ca­tions as find­ing a re­place­ment would take time and the com­ple­tion of ad­min­is­tra­tive changes is a mile­stone for the sec­ond bailout re­view.

The last op­tion is the most ag­gres­sive, as in the case that Fragki­adakis does not re­sign the HFSF will call an ex­tra­or­di­nary gen­eral meet­ing of the bank ask­ing for the re­place­ment of most board mem­bers – an op­tion the cen­tral bank op­poses.

Na­tional’s chief ex­ec­u­tive Leonidas Fragki­adakis is at the cen­ter of the NBG storm.

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