The Hellenic Postbank, once one of Greece's biggest financial institutions, is at the centre of a huge scandal after 25 people — including some former top bank executives — were charged with fraud and money laundering in connection with the issue of allegedly unsecured loans to local businessmen. The loans, issued between 2007 and 2012, resulted in losses of half a billion euro for the bank, explains I Kathimerini.
Hellenic Postbank (aka TT) was merged in 2013 with Eurobank under a program to restructure Greece's crippled financial sector. The daily adds that —
According to a Bank of Greece report, TT issued loans without guarantees and with favorable terms to several companies, some overindebted ones, with much of the money ending up in the personal bank accounts of some of the business owners who benefited.Cartoon by Ilias Makris (I Kathimerini).
Several prominent businessman have been embroiled in the scandal, including Alpha TV channel and Interamerican insurance firm owner Dimitris Kontominas, Kyriakos Griveas and Lavrentis Lavrentiadis, who is in pretrial custody for embezzlement relating to another case.