The chief executive of Greece’s National Bank (NBG) Leonidas Fragiadakis resigned on Friday after completing his three-year term in the post, the bank said. Greece’s second-largest lender by assets said in a filing to the Athens bourse that the end of Fragiadakis’ term coincided with the completion of the main part of the restructuring plan he has overseen.
With the bank now planning to redesign its business strategy, Fragiadakis decided to step down, the statement, adding it would now start looking for a successor.
The CEO submitted his resignation on Friday, after a request by the bank’s board, sources told Greek media.
The board reportedly blames Frangiadakis for a series of misguided decisions, such as the sale of the bank’s insurance unit, Ethniki Insurance, the sale of NBG’s subsidiary in Romania and his handling of the economic problems of the bank employees’ auxiliary pension fund (LEPETE).
In July 2017, Frangiadakis cut several million euros subsidy to the auxiliary pension fund and 16,500 NBG pensioners lost an average of 500 euros each month. Employees would pay 12.5% of their salary as LEPETE contribution, the bank would add the rest. The bank employees have a powerful union.
NBG said deputy Chief Executive Paul Mylonas would act as temporary CEO the bank will start procedures to hire a new CEO next week.
NBG said last week it would press on with plans to sell its wholly-owned insurance subsidiary Ethniki Insurance, after a deal to sell 75 percent of the business turned sour earlier this year.
NBG put the insurance unit up for sale as part of a restructuring plan approved by the European Union to exit non-banking operations.
The European Central Bank is due to issue the results of stress tests – a financial check up – of Greece’s four systemic banks on Saturday noon, which includes NBG.
