Galery

1

On Friday afternoon, the leadership of the trade union of bank employees and representatives of banks’ boards agreed on a new branch labour contract for bank employees. The contract’s term is 2.5 years and it will apply as of 1 July 2013 until 31 December 2015. The new contract provides for a 6% reduction of basic salaries, as well as a 3.5% decrease which will come from the cancellation of the balance bonus for the period of the contract (half a salary per year). Moreover, the new contract will contain an "Employment Clause" which expresses "the firm willingness of both sides to secure and retain jobs in the sector." Flexible working hours (three working shifts) are also provided - every day from 7:45 a.m. to 7:00 p.m., which will only apply to banks’ administrative units and not bank branches.

The contract was signed after the end of the dispute at the National Bank, where the company’s contract for 2012 (with a 7.5% reduction) includes a clause for a deduction of any reductions that will occur in the future, whether these are caused by a branch agreement or Governing Law. In this case, reductions caused by a branch agreement should be deducted from those in the company’s contract – something which the leadership of the National Bank disagreed. Ultimately, the organisation of employees of the National Bank agreed with the management and reductions will not be deducted, but will be collected.

Chairman of the trade union Stavros Koukos characterised the contract as very important and emphasised that it will secure the working mode in the banking sector and avoid personal contracts that would annul benefits for workers that have been achieved for decades.

Meanwhile, it became clear that Greek banks are studying the day after the recapitalisation. Αlpha Bank and Piraeus Bank, which were the first that started the process of recapitalisation, have secured a major part of the necessary capital. The guarantee for coverage by major international institutions was "icing on the cake" since it supported the markets’ vote of confidence in Greek banks.

Traditional institutional investors are hesitant to bet on shares of domestic banks, since they lack the conditions they require, such as investment grade, for example. Therefore, banks’ boards are turning to another source of investments, rebuilding bridges with international markets. The great transfer of activity that is happening in IR departments of Greek banks is indicative of the change of climate.

Investor relations departments of Greek banks have not had much work for a long time, since the macroeconomic situation did not allow any contacts with the international investor community. But now the situation is different and, recently, competent employees have not managed to take all requests for contacts by foreign portfolios that are seeking at least information.

Eurobank is also examining what will happen after the recapitalisation, trying to get rid of the Financial Stability Fund’s participation as quickly as possible. The first move in this direction was the purchase of bonds in exchange for shares which private investors will receive. The National Bank is also waging a struggle – its goal includes the collection of large capitals for a short period. Contacts with big businessmen and small shareholders, as well as depositors in the bank seem to have been successful, since, according to information, it has already negotiated significant participation in the bank’s capital increase.

Apparently, the banks’ image that has recently been represented on the stock exchange is no accident. Thanks to the recapitalisation, banks will gradually start looking at the future, gaining contacts with investors and international funds.