Chairman, CEO of Greece's Eurobank Ergasias Resign

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 [e-mail]

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