By Nektaria Stamouli
ATHENS--Greece's Eurobank Ergasias SA announced changes to its
management team late Sunday, after the lender's chairman and chief
executive officer had resigned.
According to a statement, the country's third largest lender
announced that former deputy chief executive officer Nikos
Karamouzis will be named as the new chairman. Mr. Karamouzis will
succeed former chairman Panayotis-Aristidis Thomopoulos.
Fokion Karavias, a general manager, will be named as the bank's
new CEO, after Christos Megalou's decision to accept a position at
Fairfax Financial Holdings Ltd. The Toronto-based fund holds a
13.6% stake in the Greek bank.
All other board positions remained unchanged.
"Under this new leadership, Eurobank can continue to play a
pivotal role in the Greek banking sector, providing value to the
Greek economy, the bank's customers and its shareholders," Prem
Watsa, chairman and CEO of Fairfax, said in a statement.
Eurobank's announcement followed a meeting on Friday between the
shareholders and Yannis Dragasakis, the deputy prime minister in
Greece's newly appointed left-wing government, to discuss the
bank's future.
However, Mr. Dragasakis said the change in management hadn't
been prompted by the government.
"They proceeded with a management change on their own
initiative, which we welcome," Mr. Dragasakis told local
broadcaster Mega TV late Sunday.
After facing six years of recession, Greece's financial crisis
and an unprecedented sovereign debt restructuring, Greek banks are
struggling to nurse their balance sheets back to health.
The country's four systemic banks-- Alpha Bank AE, National Bank
of Greece SA, Piraeus Bank SA and Eurobank Ergasias--are staggering
under a mountain of bad loans that collectively add up to about
EUR70 billion ($79.03 billion) and make up roughly a third of
banking-system loans.
Write to Nektaria Stamouli at nektaria.stamouli@wsj.com
Access Investor Kit for Fairfax Financial Holdings Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CA3039011026
Access Investor Kit for Eurobank Ergasias SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GRS323003004
Access Investor Kit for Eurobank Ergasias SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US26844B2097
Subscribe to WSJ: http://online.wsj.com?mod=djnwires