Athens Macedonian News Agency: News in English, 13-04-09

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Coalition government is cornered by troika, SYRIZA says

[02] National Bank, Eurobank boards meet to discuss future policy

[01] Coalition government is cornered by troika, SYRIZA says

A party statement underlined that, while the economy and society are suffocating because of the austerity programmes being implemented, both the government and the troika are determined to carry on with their common and pre-decided plan for layoffs in the public sector, privatisations and the demolition of labour rights.

"All the rest is happening just to fool the people," SYRIZA added, noting that "aside from their minor differences, that do not touch the core of the implemented policy, the three government partners have their hands tied behind their backs as a result of the memorandum commitments they have undertaken. They have no alternative proposal, no solution that will help the country overcome the impasse into which it was led by the memorandum policy."

SYRIZA underlined that only a government determined to have as a priority the needs of the society and not the capital holders' or the lenders' needs, can put an end to the downhill course the country has entered because of the memorandum.

[02] National Bank, Eurobank boards meet to discuss future policy

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The boards of National Bank and Eurobank were meeting late on Tuesday to discuss their future policy following Sunday's decision by the Bank of Greece to temporarily suspend their merger process and to move on with separate recapitalization schemes.

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No announcement had been made as of Tuesday night.

The two banks were at the final stage of a merger process, with the plan to proceed with a recapitalization of a single group, shortly after their legal merger in early June.

The two boards are expected to activate procedures for separate share capital increase plans and to set the dates for extraordinary general shareholders' meetings.

National Bank requires 9.7 billion euros under its recapitalization plan, while Eurobank needs 5.8 billion euros. In case the two banks failed to cover the minimum participation of the private sector, 10 pct of total recapitalization, the Hellenic Financial Stability Fund will fully cover their share capital increase requirements and will take control of the banks.

On Monday night, bank sources told ANA-MPA that Eurobank would seek the help from strategic investors in order to cover a 10 pct of private participation needed in a share capital increase plan, in the framework of a recapitalization process of the bank, and to avoid its inclusion in the Hellenic Financial Stability Fund, the bank's sources told ANA-MPA on Monday.

Eurobank sources said conditions prevailing in the market were extremely difficult, time was limited while the terms of the recapitalization did not favor attracting new private capital. They noted, however, that despite these negative factors, Eurobank will give its battle to remain in the private sector and to play a role in forthcoming developments in the Greek banking sector. The same sources said the bank's employees and businessmen with confidence in the bank's management will participate in this effort.

Meanwhile, late on Tuesday, the Finance Ministry clarified in an updated message that there was no official exchange of correspondence between the troika lenders to Greece and Greek authorities. There there was an exchange of emails requesting additional clarifications from Greece, the ministry said, but no objections to the merger of the two banks

The ministry responded to claims that the troika had blocked the mergers.

It also said that there is absolutely no disagreement between or problem in the relations between the Ministry of Finance and the National Bank's managing director, Alexandros Tourkolias. "Any such press reports are entirely untrue," the ministry said.

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