Marfin presses ahead with Greece relocation plans
Cyprus and Greece are headed into a “tough and uncertain” summer in a low growth environment, according to Efthymios Bouloutas, CEO of Cyprus’ second largest lender, Marfin Popular Bank.
Bouloutas said Tuesday that in such conditions it was very difficult to issue a guidance or profit forecast for the rest of the year.
“Cyprus and Greece have been used to 4%-plus growth environments and even though both countries have fared significantly better than others, nevertheless, it remains to be seen how 0%-1.5% growth rates will impact households, companies and Marfin Popular Bank, which has a significant presence in both countries,” he said, in response to a question by the Financial Mirror.
Referring to the board decision to relocate its base from Cyprus to Greece, Bouloutas said there is no turning back and more details will be revealed by Group Vice-Chairman Andreas Vgenopoulos when he testifies before the House Finance Committee on June 11.
Bouloutas repeated that the transfer of the bank’s base to Greece will be based on the accounts as at June 30, 2009, after which auditors will be appointed to complete an 80-point action plan until the merger between MPB and its subsidiary in Greece, Marfin Egnatia Bank, is completed.
Marfin is also waiting for the Greek parliament to vote through the cross-border EU legislation in full, a process that is expected to be finalised by mid-June.
Bouloutas added that the whole process will also require the approvals of the Bank of Greece, Central Bank of Cyprus, as well as the exchange and competitive commissions of both Greece, Cyprus and all the other countries where the Group is active.
He dismissed criticism that the decision to relocate is causing concern among clients, and instead pointed to figures released by the Central Bank, according to which Marfin Popular Bank is the only bank among the majors to have increased its loan market share in the first quarter of 2009 from 15.78% to 15.91%, while total loans are up EUR 1.5 bln on an annualised basis.
“Marfin – Home for all”
Deputy CEO Cyprus, Panayiotis Kounnis revealed details about the bank’s new housing loan, “Marfin – Home for all” that gives a loan at a fixed rate of 2.5% for one or three years after which it becomes linked to the ECB or the bank’s lending rate, plus 2.4%. The scheme is only available to residents of Cyprus, applying until the end of July for amounts up to EUR 400,000.
Kounnis said he is confident that the House of Representatives will soon pass the relevant legislation freeing up the transfer of mortgages without the need to pay stamp and other duties, which will allow borrowers to “shop” around for the best rates in the market and transfer their mortgages to other institutions, thus spurring competition.
Bouloutas said the “Marfin – Home for all” scheme is the first of many innovative and competitively priced products that Marfin Popular Bank will be launching in Cyprus and all other countries where it operates.
