"We have an agreement on which the governor of the Bank of Greece warns that if it does not go ahead, there will be dramatic consequences for depositors, the banking system, and the economy. We have one of the largest investment banks, which assures us that there is no other interested investor. And we also have all the stakeholders involved in this issue who, in the House Committee, came out in favour of the deal. I wonder if there would be any finance minister who would reject this deal."
Kostis Hatzidakis, the minister of national economy and finance, emphasized this today during his speech in the House of Representatives plenary session on the ratification of the agreement regarding the Attica Bank. He also deposited in the minutes of Parliament all the official documents related to the transaction, namely:
The letter of the Governor of the Bank of Greece, Mr. Yannis Stournaras, dated July 16, 2024, to the Minister of Economy and Finance in which he presents the capital deficit of the two banks while warning of the consequences for depositors (which include up to "haircuts" of deposits), the banking system (massive withdrawal of deposits, collapse of the most vulnerable banks), and the economy if the deal does not proceed.df
The report on the investigation of possible investment interest on the same or better terms carried out by JP Morgan at the request of the HFSF showed that there was no other interested party.
The reports of two independent financial advisors (EY and JP Morgan) that the HFSF is required by law to have.
-the letter of opinion from Rothschild (not required by law but requested by the HFSF) that the procedure followed was appropriate in the light of international practice in similar transactions.
The minutes of the HFSF Board meeting of July 18, 2024, to approve the fund's participation in the transaction. "Everything is transparent; everything is at your disposal," the minister said, adding, "So what would you do in my position? With all these facts, if I or any finance minister were to adopt this frivolous criticism that has been heard today, then he could be accused of disloyalty. I wish you would handle a similar situation one day and reject the solution. Let's see what would happen then to your parties and especially to the banking system and the economy."
WHAT SYRIZA DID IN 2015
Mr. Hatzidakis made an extensive reference to SYRIZA's actions at the Attica Bank, noting the increase in the bank's red loans from 39% in 2014 to 61% in 2019. He also noted the conclusion of the sample audit conducted at the bank in 2016, which revealed systematic granting of below-cost loans with no or partial collateral. Short-term bond loans to cover working capital allocations. Financing entrepreneurs to participate in a share capital increase to avoid losing control of the bank. A typical case is the construction company "Toxotis" of Mr. Kalogritsas friendly to the then SYRIZA government, which in 2015 took 39 loans from the Bank of Attica at concessional interest rates of 2.6% instead of 11.84%, which was the interest rate corresponding to its credit rating.
"Let's not forget the connection with the TV licenses and the attempt to create a "SYRIZA channel" through Mr. Kalogritsas. When you pretend to be prosecutors, be ready to hear the answers," he said.
The minister finally stood on the qualitative difference between the current agreement and previous efforts by the Attica Bank: "We have the involvement of the HFSF as an arm of the state to ensure the stability of the banking system. At the same time, we have the involvement of a private investor, which is also required by the HFSF statute. And we are proceeding with the EU's permission with the Hercules programme.
"So," he concluded, "we have a more comprehensive and effective intervention than the earlier and more recent efforts that have been made. We have essentially closed the pending issue that was with the disinvestment in the systemic banks. And we are taking another step by addressing another 12-year pending issue with the Attica Bank."
TAX RETURNS
At the same time, Kostis Hatzidakis, expressed his certainty that the process of submitting tax returns will be completed smoothly from the floor of the Parliament. As the minister said, 92% of the tax returns have already been submitted so far. He added that the problem that occurred yesterday afternoon and this morning for several users has already been addressed.
