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Postbank’s employees were on 24-hour strike and protest march as a sign of disagreement with the proposal of Piraeus Bank to buy the state financial institution. “We invite all our colleagues across the country to join our protest and all together not to let people’s savings to fall into the hands of private bankers,” reads the message of the Union of Workers in Postbank. Protesters gathered outside the head office of the bank near the Omoniya square and made a symbolic march to the headquarters of the Ministry of Economy on Syntagma Square.

Тhe management team of the Union of Civil Servants, who openly stated that they oppose the state banks privatization, joined the protest too. “It is more than necessary not only Postbank and Agricultural Bank to remain state property, but to unite so as to ensure the stability of both banks and the efficient support of the domestic economy,” reads the open letter of the Greek trade union to the mass media.

At the same time, the decision to select a consultant on the forthcoming series of privatizations scheduled for 2010 is delayed. The issue as to the sale of state-owned banks and some public enterprises like the state railways, which recorded a deficit of one billion euros, remains. The Ministry of Finance announced at the end of the last week that it is in talks with eight international investment companies. They should make an independent report on the state of public enterprises for sale and help the government draw up a comprehensive strategy for the forthcoming privatization processes. The government plans the assets evaluation of both banks to be completed by the end of September. If approved, the process of their privatization will be concluded by year’s end.

The government has chosen three of the eight candidates - Morgan Stanley, UBS and Credit Suisse First Boston.  The Ministry of Finance had to announce the two consulting companies in Wednesday, July 21. Independence and lack of commitment by the subsidiaries on the Greek market were the main criteria in considering the investment consultants. Companies with a dubious reputation in Greece like JP Morgan and Goldman Sachs were not invited to apply for consulting company.

The decision for the selection of consultants for the privatization of Postbank and Agricultural Bank was postponed to Friday due to the apparent conflict of interest. The government continues to maintain the possibility to keep the state companies irregardless of who are the consultants on the privatization of Greek banks and companies. “We support the state presence on the Greek banking market as the proper financing of the economy will largely determine the recovery of positive economic growth in the country after the second half of 2011,” said an anonymous source from the government of George Papandreou to Imerisiya Journal.