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Another 7,000 bank employees will leave in 2014

22 September 2013 / 17:09:22  GRReporter
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The number of bank employees has to be reduced by about 20,000 by 2017, 7,000 of which in 2014, within the programme for limitation of functional expenses.

Gert Koopman, Deputy Director of the Directorate General for Competition of the European Commission DGCom is in Athens. In the last 48 hours, he met with  Greek bankers who are trying to mitigate the strict limits set by the European Commission and overcome problems so that they can continue their programmes for voluntary redundancy. Bankers introduced their theses to Koopman, but talks will be led by Finance Minister Yiannis Stournaras.

According to the report of the Financial Stability Fund, good progress was achieved at the meetings in terms of the commitments which banks will take for the Competition Commission regarding restructuring plans which will be approved by DGCom, after the planned stress tests for banks are carried out.

According to senior bank officials who participated in the meetings with Koopman, he is open to all suggestions as long as they serve main objectives, such as the condition that banks should have capital ratios above 9%, and return the 50 billion euro which they have received during their recapitalisation as quickly as possible. Based on the return of capital, he has asked banks to proceed to the sale of property and especially their non-banking activities. Banks need to manage effectively "red" loans which today exceed 30% of the total 70 billion euro. The loans to deposits ratio should be limited to a level of 100% from today’s 120%. They should proceed to limitation of functional costs, which means fewer staff and fewer branches. Furthermore, Koopman asked that the policy of Greek banks on the Balkans should be planned again under the supervision of the Financial Stability Fund and the Bank of Greece.

Tags: Gert Koopman European Commission banks limitation of functional costs
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