Greek media: Paul Koster, Chairman of HFSF, submitted resignation

Paul Koster, the Dutch chairman of Greece’s bank bailout fund Greek Financial Fund (HFSF) submitted his resignation, Greek media reported on Friday evening. Koster’s resignation comes six weeks after he was appointed to this post and in the middle of the Greek banks recapitalization and reconstruction process. The HFSF is in charge of recapitalising the country’s banks with 50 billion euros in bailout funds provided by the European Union and the International Monetary Fund.

Paul Koster was appointed chairman of HFSF on 1. February 2013 with a contract until 30. June 2017. According to media information, Koster claimed personal reasons for his resignation. His family lives in Dubai.

For his post Koster was receiving a salary of 185,000 euro per year. The salaries of the board members of HFSF are scandalous  for the fiscal situation of the country.

“Bankers wanted a more “flexible” person at this post, somebody who would do some favors to the banks’ big shareholders and would move beyond the fiscal adjustment program of the Troika.

Paul Koster was appointed to this post after the Troika’s pressure, especially the pressure of Germany that did not trust the Greek banking sector,” daily Eleftherotypia noted.

Late Friday, there was no official confirmation of the resignation. Neither from the HFSF nor from the Greek finance ministry. However, two banking sources told Reuters on Friday evening, that “Koster will step down.”

Some Greek media reported that his resignation has not been made public yet as there were efforts to convince him otherwise. Economic news portal newsmoney.gr claimed that it was some of Koster’s points of view had caused a rift with the Greek bankers.

Newsmoney.gr reported that Koster had also a work position in Dubai and he was visiting Athens twice per months for the needs of HFSF.

His resignation could trigger a serious operational problems to HFSF that will have to deal in due time with the recapitalization of the banks, the sale of Proton Bank and Postbank and other complicated issues.