PIRAEUS FINANCIAL HOLDINGS S.A.
Press Release
New programme of Euro 1 billion from Piraeus Bank to small and medium-sized enterprises.
During the Shareholders' Extraordinary General Meeting for the share capital increase, with the issuance of preferred shares, the Chairman of Piraeus Bank Michalis Sallas among other things stated:
Greece is experiencing the consequences of the international economic crisis despite that its banks were not involved in "toxic products". This fact, in combination with the high capital adequacy of Greek banks, enables Greece to address effectively the developments and with relatively smaller consequences compared to other countries.
However, in today's globalised environment, the drop in global demand along with the restriction of liquidity due to the mistrust that was created, requires Greece as well, to undertake measures for further liquidity enhancement, business sectors' and SMEs' support programmes and measures for supporting demand and accelerating public investment programmes.
Mr. Sallas considers that the package of euro 28 bn for the protection of the market, is sufficient to cover liquidity requirements, and there is no need for any additional support programme. He also noted that the Greek banking system's liquidity is being gradually normalized.
Regarding the Bank's participation in the support programmes, he mentioned that Piraeus Bank is actively taking part in the Credit Guarantee Fund for Small and Very Small Enterprises (TEMPME) programme and that is has approved over 50% of the applications that have been submitted. Also, Piraeus Bank implements a relevant programme for the reinforcement of small-medium enterprises, in collaboration with the European Investment Bank and has, furthermore, disbursed loans of euro 900 mn towards small and medium enterprises in the framework of its operations, during the last quarter of 2008.
In addition, Piraeus Bank prepares for a new programme, in co-operation with the Athens Chamber of Commerce and Industry (EBEA) for small and medium-sized enterprises of the Attica region, for up to euro 1 billion. This programme has been discussed and planned in co-operation with the Chairman of EBEA Mr.K.Michalos. During the following two weeks, a joint Committee of the Chamber and Piraeus Bank will conclude the programme's implementation process, the criteria and the banking terms.
Other relevant programmes for small and medium-sized enterprises will follow in discussion with other large Chambers across Greece.
In the meantime, at the Shareholders' Extraordinary General Meeting the share capital increase of the bank by euro 370 million was approved with the issue of new preferred shares in favor of the Greek State. At the Meeting approximately 30% of the shareholders participated.
Responding to a question regarding dividend distribution for 2008, Mr. Sallas replied that a 35% of the Bank's profit will be proposed, in accordance to the law.
During the Shareholders' Extraordinary General Meeting for the share capital increase, with the issuance of preferred shares, the Chairman of Piraeus Bank Michalis Sallas among other things stated:
Greece is experiencing the consequences of the international economic crisis despite that its banks were not involved in "toxic products". This fact, in combination with the high capital adequacy of Greek banks, enables Greece to address effectively the developments and with relatively smaller consequences compared to other countries.
However, in today's globalised environment, the drop in global demand along with the restriction of liquidity due to the mistrust that was created, requires Greece as well, to undertake measures for further liquidity enhancement, business sectors' and SMEs' support programmes and measures for supporting demand and accelerating public investment programmes.
Mr. Sallas considers that the package of euro 28 bn for the protection of the market, is sufficient to cover liquidity requirements, and there is no need for any additional support programme. He also noted that the Greek banking system's liquidity is being gradually normalized.
Regarding the Bank's participation in the support programmes, he mentioned that Piraeus Bank is actively taking part in the Credit Guarantee Fund for Small and Very Small Enterprises (TEMPME) programme and that is has approved over 50% of the applications that have been submitted. Also, Piraeus Bank implements a relevant programme for the reinforcement of small-medium enterprises, in collaboration with the European Investment Bank and has, furthermore, disbursed loans of euro 900 mn towards small and medium enterprises in the framework of its operations, during the last quarter of 2008.
In addition, Piraeus Bank prepares for a new programme, in co-operation with the Athens Chamber of Commerce and Industry (EBEA) for small and medium-sized enterprises of the Attica region, for up to euro 1 billion. This programme has been discussed and planned in co-operation with the Chairman of EBEA Mr.K.Michalos. During the following two weeks, a joint Committee of the Chamber and Piraeus Bank will conclude the programme's implementation process, the criteria and the banking terms.
Other relevant programmes for small and medium-sized enterprises will follow in discussion with other large Chambers across Greece.
In the meantime, at the Shareholders' Extraordinary General Meeting the share capital increase of the bank by euro 370 million was approved with the issue of new preferred shares in favor of the Greek State. At the Meeting approximately 30% of the shareholders participated.
Responding to a question regarding dividend distribution for 2008, Mr. Sallas replied that a 35% of the Bank's profit will be proposed, in accordance to the law.