Friday 1 June 2007

The Greek Postal Savings Bank responds

The Greek Postal Savings Bank (GPSB) and its President recently have become the object of multiple attacks from a portion of the Press and the Media, particularly since the President of the GPSB testified before a hearing of the Hellenic Parliament.
The GPSB has provided sufficient and complete responses to all the topics that have arisen on all levels, both before Parliament and towards the Media with complete transparency and clarity.
In order to restore the truth and avoid creating any incorrect impressions, we would like to note the following:

1. GBSB is a company listed on the Athens Stock Exchange, the Greek State is its majority shareholder, but there are a further 70,000 private and institutional investors with a stake in the company. As a Bank it falls under the supervision of the Bank of Greece (BoG). The accuracy of its financial data is inspected by International Auditing Firms. GPSB's activities and the performance of its investments are regularly examined in toto by a variety of investment Banks on behalf of investors.
2. Over the past three years, GPSB has displayed a dynamic image, constantly seeking out and winning a larger market share. This is in complete contrast with the previous twenty years, when the company showed a constant decline and loss of reputation. One wonders where these people who now protest and decry were all these years! Is it a matter of chance that during GPSB's downward spiral they remained silent and that now that there is growth, they protest? Whose interests are they in fact defending? Certainly not the interests of the GPSB shareholders.
3. The statements made by the President of the GPSB in Parliament have been obviously twisted, despite the fact that they are set down word for word in the Minutes. GPSB collaborates exclusively with Banks with which it executes the relative contracts. Consequently GPSB has never signed any agreement whatsoever with Mr. Papamarkakis or North Asset Management or other capital fund managers. Any statement made to any other effect is false.

We state categorically that the GPSB does not collaborate with intermediaries nor, of course, has it paid corresponding commissions.

4. In his statement made on the 30.3.2007 to the Press, the President of the GPSB stated categorically that his relationship with Mr. Papamarkakis of North Asset Management is limited exclusively to his participation without recompense in a firm investing in commercial real estate in Eastern and Central Europe, which is listed on the London Stock Exchange. Mr. Tsoupidis' participation in a consultation committee for this firm is an exceptional honour, as it is formed by renowned individuals from the European corporate and political arena and the company's activities have no relationship whatsoever with the GPSB and Greece. It should be further noted that in accordance with Law 2190/20 which regulates the operation of Sociétés Anonymes no issue is raised concerning gaining approval from any supervisory body for the aforementioned participation.
5. Over the past three years GPSB has displayed exceptional performances in handling an investment portfolio which by Greek standards is massive. In 2006 GPSB realised profits amounting to 126 million euros from the management of its portfolio, which as a percentage of its overall profit is the largest in Greece, in comparison to other banks.
6. In particular, where the portfolio of structured products and the GPSB investment in structured Greek State Bonds are concerned in 2006, GPSB turned a profit of 33 million euros, i.e. 6,2% on its investment with additional balance on 31.12.2006. This result is exceptional in comparison with a ten-year Greek State Bond that would provide 4% or a placement on the inter-bank market at 3%. The aforementioned profit is the result of individual positive yields and in certain instances certain negative yields. Should any journalist or politician know of a way in which to make profit without ever taking a loss from any investment we would be glad to know of it.
7. In relation to Bloomberg, which recently appears to have found new readers, the international practice is that when an investment is not mentioned in a public offering, there is no commitment made for mandatory recording.

Over the past three years, shareholders of the Greek Postal Savings Bank, its employees and customers have reaped significant benefits from its growth, compared to the past. Despite its critics, the Greek Postal Savings Bank will continue without hitch in its progress with growth and modernisation. We hope that the attacks which we have received do not have as their aim to ruin the reputation of the Greek Postal Savings Bank to the benefit of our competitors.