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    Merger as a grip for pulling hair out of the swamp
    
    Greek banks produce 4.36 percent of the gross domestic product of the country and are therefore a key sector in the eyes of the government, which does not hide its sympathy towards the idea of mergers of banks under the Scheme 2 in 1 or even 3 to 1. In the center of most schemes stands, of course, the biggest bank in the country the colossus National Bank of Greece. Its official admited that the rumors of impending mergers are not new and are consistent in times of crisis. He neither confirmed nor denied anything, but merely said: "I can not tell you anything at the moment". Which says a lot by itself.
    So far, at least officially, bankers prefer to play single and seek outside investors. We already wrote about the interests of HSBC and BNP Paribas in the Greek banking market. This week a lot of noise was caused by the message to the announcement of the newspaper Financial Times, that the Qatar investment fund "Qatar Investment Authority" wants to buy a share of the National Bank of Greece. The management of the bank rushed to refute the information and assured that the National Bank of Greece has no intention to increase its equity capital, as it did this a year ago and at much better conditions.
    According to the weekly "Kefaleo" the mistake, however, is true and indeed Qatar Investment Authority wants to buy a share of the bank, however it was not about the National, but Alpha Bank. The Arab investment fund at the beginning wanted to buy a 4 percent stake in the Greek private bank, but later that percentage increased to a little under 5 percent. Many analysts believe that since European and U.S. markets are closed their doors for the Greek banks, it is logical for them to turn to investors from the Middle East and Asia.
    Why, however, after the market logic clearly indicates that the only solution is consolidation of the Greek banking system, it is delayed so much, and it is not happening? Due to a specific phenomenon that political scientists call

    Greek Resistance Against Reforms

    or the enviable resistance of Greece to reform or to do so as slowly as possible and as little as. In this country the philosophy "Why change, since so far as I've lived so well," flourishes as nowhere else. Of course, in the case of Greek bankers there is another point. When the number of the banks from around 10 becomes two or three many presidents, executive and managing directors, board members, etc. would lose their posts. Some will lose money, others will lose a lot of money. Therefore, the decision to merge two banks is painful for the people who manage them. It must however be taken on time. Because if delayed, we will no longer talk about a merger of banks, but we will say that one bank has bought another one. Which is a completely different story. However, it is still preferable than an end of the type Lehman Brothers.
    And as far as Greece is surrounded by storm clouds, there is no doubt about it. During the week the online edition EUobserver wrote that half of the 44 bank managers polled by "The Economist intelligence Unit", said they expect one or more countries to leave the eurozone by 2013. They point out that most likely these countries will be Greece, Portugal, Spain and Ireland. Thirty-six percent of the respondents predict a total collapse of the single European currency. Many Greek businessmen consider the option of leaving the eurozone to be absurd, but their European coleagues do not share this opinion.
    Trust in Greek banks is falling down and this is a fact that every serious banker must at least admit before himself. According to agency Reuters from the beginning of the year until the end of May 18 billion euros left Greek vaults and went abroad, which is 7.6 percent of all the deposits in them. Most often the withdrawn and transfered in foreign banks amounts were in the range between 100 and 200 thousand euros, and the holders of deposits between 10 and 20 thousand directly withdrew them and took them home.
    Like every hero, caught in a difficult situation and torn by the need to make a fateful decision the Greek bankers are also very interesting and attractive to observe and analyze. And they must get accustomed to their new place in the media. Baron von Munchausen is popular and loved until today, because he is brave and resourceful and finds a way out even from the greatest deadlock. This is the behavior that is expected today from Greek bankers as well.
    If you noticed, we did not say anything about the Cypriot banks and their presence in Greece and abroad. About them I will tell you in the next story. For as you remember the following one we saved it for the Greek insurers.