EFG Eurobank Securities inaugurated its new building today. EFG Eurobank Securities is the product of the merger of EFG Eurobank Securities, Ergobank Securities and Telesis Securities. In a press conference held before the inauguration ceremony, the CEO of EFG Eurobank Ergasias Nikolaos Nanopoulos pointed out that "The timing of the inauguration coincides with the first birthday of the upgrade of Greece and the ASE to developed market status from emerging market status. The upgrade gave rise to expectations of important foreign capital inflows, which have been disproved. Today the issues at the foreground are unrelenting and inexorably connected to developments in the local capital market. They are (a) the quality of corporate governance in Greek companies, (b) the accuracy of financial statements and the adoption of IAS, and (c) the low liquidity of the Greek capital market.
EFG Eurobank Securities inaugurated its new building today. EFG Eurobank Securities is the product of the merger of EFG Eurobank Securities, Ergobank Securities and Telesis Securities. In a press conference held before the inauguration ceremony, the CEO of EFG Eurobank Ergasias Nikolaos Nanopoulos pointed out that "The timing of the inauguration coincides with the first birthday of the upgrade of Greece and the ASE to developed market status from emerging market status. The upgrade gave rise to expectations of important foreign capital inflows, which have been disproved. Today the issues at the foreground are unrelenting and inexorably connected to developments in the local capital market. They are (a) the quality of corporate governance in Greek companies, (b) the accuracy of financial statements and the adoption of IAS, and (c) the low liquidity of the Greek capital market.With these three issues combining into a relatively negative picture for the ASE, many foreign analysts believe that Greek stocks should trade at a discount to their European peers. This is in spite of the better growth profile of Greece vis a vis other European countries. Therefore, despite the stronger growth of the Greek economy, systemic weaknesses which, happily, are being dealt with, have made international investors cautious as regards the ASE. In the last few weeks we are experiencing a slow but steady reinvigoration of international interest in the ASE. This is a positive indication, but should not derail us from the need to implement the structural changes or economic policy that will yield the required results. This policy must focus on the intensification of privatisations, the conclusion of the overhaul of the social security and tax systems, the required fiscal discipline and the efficient use of funds available under the third Community Support Framework, the control of inflationary pressures the rationalisation of public sector management and the enhancement of labour market flexibility." Additionally, the Alternate CEO of EFG Eurobank Ergasias and Chairman of EFG Eurobank Securities Nikolaos Karamouzis noted that "the sustainability of the positive market outlook depends on the sustainability of corporate profitability. The three pillars required for the improvement of the ASE is an effective structural economic policy, an encouraging level of corporate profitability and a positive international environment. On the present structure of the market three types of investors will be the driving force of the market. They are foreign institutionals, that have started to reappear, private clients, that have until recently been absent from the market and state pension funds, that could help institute a positive sentiment as long term investors. The minimum required of the state, assuming it wishes to preserve direct or indirect control over certain companies is to maintain an able and continuous management." As regards foreign investors, Mr. Karamouzis indicated that "the local market is small, and the geographic location of the country, the bureaucracy and the costs do not help. There are specific that will attract significant inflows like energy, telecommunications, tourism and services generally if privatisations proceed. Sectors where the presence of the state is currently significant. The answer, therefore, to the need to attract foreign inflows is not only in the introduction of institutions that will speed decision making, but also a faster pace in structural reform and privatisation".Regarding the tax system, Mr Karamouzis pointed out that the "programme of the Georgakopoulos reform committee is adequately radical and complete. I believe that together with measures alleviating some of the tax burden from the low end of the wage scale, we need tax measures to boost invetsment, employment and capital inflow. We need a holistic approach of the issue. We need an effective, efficient and fair system for the taxation of revenues from transferable securities. The existing regulation is ineffectual and unfair. The system needs to be development-orientated." EFG Eurobank Securities is the product of the merger of EFG Eurobank Securities, Ergobank Securities and Telesis Securities. In the first four months of 2002, the new company had a market share in excess of 9%.The new company offers a full range of investment services both in the domestic and in international markets. Particularly as regards international capital markets, the services include:
On the occasion of the new phase of operations of EFG Eurobank Securities, there will be an open debate between the Finance Minister Nikos Christodoulakis and the opposition MP George Alogoskoufis on Friday, 31 May 2002.