After the latest developments in the Hellenic Bank and despite the withdrawal of the General Manager in Greece, Giorgos Panayiotou, the HB high ranking officials are still under pressure. The Hellenic Bank announced today that Mr. Panayiotou will be replaced by the former Managing Director of the National Bank of Greece (Cyprus), Michalis Tagaroulias. Mr. Nearchos Marangos will also become the new General Manager. The latest changes in the Greek branches might signal further changes in the leadership of the bank.
In its announcement released today, the Hellenic Bank reported that “it is impossible to make any comments on press reports, before the bank takes certain decisions and the Board of Directors announce the results”.
According to the same announcement, the developments in the period between late 2004 and February 2005 within the framework of the inspections carried out by the Central Bank and the external auditors, made the increase in the provisions necessary.
Hints
Sources revealed that the dangers from the increased bad debts had been identified a long time ago. “We had sounded the alarm, but there was no response”, they said. Same sources said that the bank did not adopt the proper procedures in the granting of loans in Greece, which led to the “termination of cooperation” with Mr. Panayiotou.
In an effort to cover, Mr. Panayiotou, Hellenic Bank Finance Director, Giorgos Appios said that the procedures in Greece “were stricter than in Cyprus”. On a StockWatch question whether this can be a criticism to the tactics in Cyprus, Mr. Appios said that the “increased inspection procedures” is an ordinary practice for operations that are geographically away from the centre of administration.
Bank officials believe that the prevailing situation is partly attributable to the failure to adopt a more conservative policy on provisions in the past. “If we had proceeded to increased provisions in 2001 or 2002, we wouldn’t be in this position now”, sources told StockWatch.
In its announcement released today, the Hellenic Bank reported that “it is impossible to make any comments on press reports, before the bank takes certain decisions and the Board of Directors announce the results”.
According to the same announcement, the developments in the period between late 2004 and February 2005 within the framework of the inspections carried out by the Central Bank and the external auditors, made the increase in the provisions necessary.
Hints
Sources revealed that the dangers from the increased bad debts had been identified a long time ago. “We had sounded the alarm, but there was no response”, they said. Same sources said that the bank did not adopt the proper procedures in the granting of loans in Greece, which led to the “termination of cooperation” with Mr. Panayiotou.
In an effort to cover, Mr. Panayiotou, Hellenic Bank Finance Director, Giorgos Appios said that the procedures in Greece “were stricter than in Cyprus”. On a StockWatch question whether this can be a criticism to the tactics in Cyprus, Mr. Appios said that the “increased inspection procedures” is an ordinary practice for operations that are geographically away from the centre of administration.
Bank officials believe that the prevailing situation is partly attributable to the failure to adopt a more conservative policy on provisions in the past. “If we had proceeded to increased provisions in 2001 or 2002, we wouldn’t be in this position now”, sources told StockWatch.
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