1) Supported Financial Institutions
a) Main issues per systemic bank
i) NBG
In January 2015 the HFSF provided its consent to NBG to proceed with the reversemerger of Pangaea REIC with MIG REIC. Pangaea REIC owns 96.94% of the share capital and voting rights of MIG REIC. The proposed merger has been proposed to take place in consolidating the assets and liabilities of the above mentioned companies.
In September 2014 HFSF had provided its consent to NBG in order for Finansbank to
proceed with a Share Capital Increase (SCI) without pre-emption rights of existing
shareholders, by means of a public offering. On March 20th 2015 NBG and Finansbank
announced that they have jointly taken the decision not to proceed with the offering of
Finansbank shares on the Istanbul stock exchange on the existing timetable.
Furthermore they announced that they intent to monitor equity capital market conditions closely with a view to potentially re-launch the transaction in H1 2015.
In June 2015 NBG postponed the offering of Finansbank shares. In July 2015 NBG
announced that the relevant application has been cancelled by the Capital Markets
Board of Turkey. NBG and Finansbank noted that they were continuing to work on the
offering with the aim of accessing the equity capital markets, subject to market
conditions and receipt of necessary approvals.
In June 2015 NBG’s fourth warrants exercise took place. There were 1,844 warrants
exercised and 15,174 actual shares exchanged, with the Fund receiving € 70,955.
Following the exercise the HFSF shareholding in NBG declined by 0.0004% to 57.24%.
In June 2015 NBG’s Annual General Meeting of Shareholders took place.
ii) Piraeus Bank
On April 17th 2015 the BoG announced that in the context of the resolution procedure,
provided for in Law 4261/2014, and following an informal tender offer for the
acquisition of assets and liabilities of Panellinia Bank, it had decided their transfer to
Piraeus Bank.
In June 2015 Piraeus announced that that it has entered into a definitive agreement
with Al Ahli Bank of Kuwait K.S.C.P. (“ABK”) to dispose its stake (98.5%) in Piraeus Bank
Egypt S.A.E. (“PBE”), its Egyptian subsidiary, subject to Central Bank of Egypt and other
regulatory approvals in Egypt, Greece and Kuwait, including the Hellenic Financial
Stability Fund.
In June 2015 Piraeus Bank’s Annual General Meeting of Shareholders took place.
iii) Eurobank
In February 2015 the HFSF provided its consent to Eurobank’s BoD to proceed with management changes following the resignations of the President of the BoD, Mr. Panagiotis Thomopoulos and the CEO, Mr. Christos Megalou. The BoD decided to elect Mr. Nikolaos Karamouzis as President and Mr. Fokion Karavias as CEO.
iv) Alpha Bank
In June 2015 Alpha Bank’s fourth warrants exercise took place. There were 13,800
warrants exercised and 102.239 actual shares exchanged, with the Fund receiving
€ 49,034. Following the exercise the HFSF shareholding in Alpha declined by 0.0008% to
66.24%.
In June 2015 Alpha Bank’s Annual General Meeting of Shareholders took place.
2) Liquidations
i) In January, February and up to March 5th 2015 the Fund had received a total of
€208.7 million from the banks under liquidation. Specifically, the Fund received from
the liquidators the amounts as per the table below:
Bank under Liquidation
Inflows from liquidations
(amounts in €)
Lamia Cooperative Bank 4.000.000
Proton Bank 694.410
ATEbank 95.000.000
Hellenic Post Bank 15.000.000
Probank 5.500.000
Achaiki Cooperative Bank 10.000.000
First Business Bank 7.500.000
Dodecanese Cooperative Bank 49.000.000
Evia Cooperative Bank 2.000.000
Western Macedonia Cooperative
Bank 15.000.000
Lesvos-Limnos Cooperative Bank 5.000.000
Total 208.694.410,13
ii) Resolution process for Panellinia Bank
In accordance with Regulation (EU) No 575/2013 of the European Parliament and of the
Council of 26 June 2013, BoG declared that Panellinia Bank did not meet the minimum
capital requirements, furthermore, Panellinia Bank had failed to raise the necessary
funds, which had been identified in the context of the second recapitalisation exercise,
following the lapse of all three deadlines granted for that purpose.
On Friday March 27th 2015 the BoG informed the four systemic Banks that it was
initiating the “purchase and assumption” process for Panellinia Bank. The BoG informed
the Banks that they should provide binding bids, the deadline for submission of the bids
was for April 8th at 6:00 pm Greek time. On April 7th 2015 the HFSF provided its consent
to the systemic banks that expressed their interest to participate in the Resolution
process for Panellinia Bank.
3) HFSF internal issues
i) Signing of the third Amendment Agreement relating to the Master Financial
Assistance Facility Agreement
Following the Eurogroup statement on Greece dated 20 February 2015, in which it was
mentioned that the Euro area Member States were favorably disposed to an extension
of the Greek Master Financial Assistance Facility Agreement (Master FΑFA) and the
letter from the Minister of Finance addressed to the ESM and to the Eurogroup, dated
18 February 2015, with the request for such an extension, an extension of the
Availability Period under the Master FΑFA has been agreed by the parties involved,
including HFSF. The third amendment relating to the Master Financial Assistance Facility
Agreement was signed on 15 March 2015.
ii) Return of EFSF Notes to the issuer and reduction of HFSF capital
Following a ministerial decision of 26 February 2015 and in accordance with the Master
Financial Assistance Facility Agreement signed on 15 March 2012 as amended and in
alignment with the Eurogroup statement of 20 February 2015 the HFSF proceeded with
the re-delivery of the unused EFSF Notes, with nominal value of €10,932,903,000 to the
EFSF on 27 February 2015. Additionally, the HFSF proceeded with the reduction of its
paid in capital by the amount of €10,932,903,000.
iii) Replacement of the MoF Representative in the GC
Mrs. Kerasina Raftopoulou replaced Mr. Avraam Gounaris, on 06.03.2015, as the new
member of the HFSF General Council, representing the Ministry of Finance
iv) Transfer to the Hellenic Republic of €555.6 million
The HFSF received in December 2012 from the Greek banks a one-off fee of €555.6
million in accordance with the 21st December 2012 Amendment and Restatement
Agreement to the Presubscription Agreement dated 28 May 2012 and the Law
4093/2012 (first article subparagraph D. 1 point 2.a). The One-off fee was considered as
revenue of the Hellenic Republic on a general government consolidated basis.
On March 19th 2015 a law (L. 4320/2015 Gov. Gazette A29/19.05.2015) was passed by
the Parliament that provided for the transfer of the amount of €555.6 million along
with the interest generated since 21 December 2012 from its placement with the Bank
of Greece to an account of the Greek state. In compliance with the law the HFSF
transferred the amount of € 555.9m to the Greek state on the same date.
v) Placement of 90% of HFSF’s available cash into a cash management account with
the BoG
On March 19th 2015 a law (L. 4320/2015 Gov. Gazette A29/19.05.2015) was passed by
the Parliament that provided for the amendment of HFSF’s founding law (L. 3864/2010),
according to which amendment the HFSF is obligated to place its available cash balances
as follows: 10% in a special interest account with the Bank of Greece and 90% in a cash
management account with the Bank of Greece. The cash in the cash management
account will be placed on repos, reverse repos, buy/sell back, sell/buy/back with the
Greek State as counter party in accordance with paragraph 11 (g) of article 15 of the law
2469/1997. On March 19th 2015 the HFSF transferred 90% of its available cash,
amounting to € 309.409.778, to the cash management account with the BoG.
In line with Law 4323/2015 (GG 43/27.04.2015) and the relevant agreement with the
MoF, in June 2015 HFSF transferred HFSF’s remaining available cash to the Cash
Management account held with the BoG.
vi) Management Changes
In March 2015 Mr. C. Sklavounis, Chairman of the HFSF General Council, and Mr. S.
Wilcke and Mr. J. Zafiriou, Non-Executive members of the HFSF General Council,
submitted their resignations to the Minister of Finance, which were accepted. A process
for their replacement has been initiated, through a public call for expression of interest,
on 01.04.2015. In the meantime, the General Council maintains its quorum, operating
with the six remaining members.
On May 8, 2015 Mrs. Anastasia Sakellariou, CEO of HFSF, submitted her resignation to
the Minister of Finance, which was accepted.
On May 25, 2015 Mr. George Michelis was appointed Chairman, replacing Mr. Christos
Sclavounis who resigned on 23/03/2015. Mr. Pierre Mariani was the Acting Chairman of
the Fund up to 25/05/2015.
On June 18, 2015 Mr. Elias Karakitsos and Mr. Jon Sigurgeisson were appointed by the
Minister of Finance (Government Gazette YODD 435/18.06.2015) as non-executive
members of the General Council, following the resignation of Mr. Stephan Wilcke and
Mr. John Zafiriou.
vii) HFSF acting CFO/COO
Following the resignation of Mr. Ioannis Kyriakopoulos, HFSF CFO/COO in June 2015 the
Fund’s General Council appointed Mrs. Evangelia Chatzitsakou as the HFSF acting
CFO/COO.
viii) HFSF Budget for 2015
In March 2015 the HFSF 2015 Budget was approved by the HFSF General Council and
was submitted to the MoF.
ix) HFSF Financial Statements
On April 30, 2015 the HFSF issued its Annual Financial Report for the year ended
December 31, 2014 and on June 29, 2015 the HFSF issued its Interim Financial
Statements for the three month period ended March 31, 2015.