Eurobank’s strategic plans. Its management has
decided to sell the bank’s branch network in
Poland, and it is very likely that this deal will have
been completed by the time of publication. The
Latsis Group bank estimated that only this trans-
action would generate an amount of €700-800
million, which would be directly used for covering
liquidity requirements. Reportedly, another such
deal is being considered in the wider region of SE
Europe, albeit no final decisions have been taken.
Piraeus Bank expected the successful completion
of an €800 million rights issue, which could even
lead to a partial change in the bank’s shareholder
structure —at the time of writing is was not possi-
ble to do more than guess on the outcome—
since a major foreign fund had shown significant
interest.
The purpose of the rights issue that was organized
in early 2011 by Marfin Bank was also to increase
liquidity, thus demonstrating the predominance of
this factor (liquidity), as a result of the crisis; which
is, after all, the main conclusion of this article.
And it is, of course, obvious that, under the cur-
rent circumstances, mergers and strategic
alliances are out of the question for Greek
bankers. “Concentration in the banking sector is
on the wane”, estimated Eurobank’s CEO, Nick
Nanopoulos, thus giving an indication of market
sentiment, at least from the banks’ part, for the
coming six-months.
Nonetheless, the Bank of Greece is of a different
opinion. If possible, the central bank would love to
see the relevant process (of concentration and merg-
ers) starting tomorrow morning! BOG officials
express the opinion that it will be much easier to face
the crisis through concentration, than by dealing with
the problem on an individual basis. They estimate,
and repeat whenever given the opportunity, even
through the BOG’s governor, George Provopoulos,
that joining forces will benefit everyone.
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