Gold Magazine June - July 2013, Issue 27 | Page 35

HELLENIC BANK dence in the system and had a very negative impact on Hellenic Bank. Nevertheless, in this exclusive interview with Gold, he insists that the Bank remains strong and hopes to maintain its independence as it moves towards satisfying its capital adequacy requirements by the end of September. CBC’s decisions and the relevant decrees issued by the Minister of Finance regarding restrictions on banking transactions. We believe that the present restrictive measures regarding the internal market are still excessive and are one of the reasons that led to the recent downgrading of Hellenic Bank by Fitch Ratings – one that is not related to the Bank itself. Our inability to fully serve our customers’ needs, due to the restrictive measures that have been imposed on us, has had an impact on our relationship with some of customers. Unfortunately, what has happened has shaken the public’s trust in banks in general and in the reputation of Cyprus as a financial centre, even though we – as Hellenic Bank – differentiate ourselves from the rest of the banking sector and have, so far, successfully managed these changes. In general, I would say that the Group is coping quite well. It has a comfortable liquidity (ratio of net loans to deposits 61%) and has not needed any assistance in the form of cash from the Emergency Liquidity Assistance (ELA) of the European Central Bank. WE BELIEVE THAT THE PRESENT RESTRICTIVE MEASURES REGARDING THE INTERNAL MARKET ARE STILL EXCESSIVE • Hellenic Bank wins Deutsche Bank’s 2008 EUR STP Excellence Award for the Exceptional Quality of Payment Messages. 2009 An agreement is signed between Hellenic Bank and the European Investment Bank for the granting of loans on favourable terms to small and medium-sized enterprises in Cyprus and Greece. What measures do you consider necessary for Cyprus to come out of the recession? We believe that, following the recent Eurogroup decisions and agreement on the MoU, Cyprus should intensify its efforts to change its financial model in order to support economic growth so that the island soon emerges from the recession. We expect to see the implementation of effective measures to reduce unemployment and improve business conditions. Generally speaking, every effort must be geared towards restarting the economy in order to create investment projects and to open up job opportunities. On the other hand, we also need to intensify our efforts to rebuild credibility and trust in both the economy and the country’s financial system. Attracting foreign investment by offering a favourable business environment and the right incentives will also be key, as will encouraging new investments in sectors such as energy, green economy and tourism. What will Hellenic Bank focus on and what messages do you want to give your customers and those foreign investors who have placed their trust in you? We are in constant communication with our customers in order to preserve to the maximum our cooperation and the excellent relationships that we have developed with them. The limitations imposed on the transfer of capital have definitely had a negative impact on many of our business relationships but we expect that lifting them will immediately benefit both the Bank and its customers. Our main message is that we are a Bank with a strong balance sheet, prudent management 2010 Hellenic Bank passes the European Union Banking Stress Test Exercise. This exercise, carried out at the Bank’s own initiative, recognises its healthy financial position and strong capital adequacy even in the worst-case scenario. • Hellenic Bank wins the Citi Performance Award of Citi Bank for its fully automated swift transactions towards Citi Bank. and comfortable liquidity, and we are making constant efforts to reinforce our capital adequacy. People who bank with us know that we have always been a reliable partner and that we will support them. Unfortunately, many of the decisions that are deeply affecting us were taken without any prior consultation with us. What measures has Hellenic Bank taken to contribute to the overall effort to restart the economy? Hellenic Bank is contributing in a proactive and decisive way. Since 17 April, we have lowered the basic lending interest &FW2