Hello, we just had our first almost winter weekend with the government keeping a low profile due to K.M. being abroad, while PASOK made a strong presence at symbolic events like the farewell to Vasso Papandreou, who passed away modestly and humbly, just as she lived her entire life. There were also celebrations with the wedding and traditional clarinet music at Haris Doukas’ wedding—finally, something traditional after the woke flood of recent months that has probably worn out even the most hardcore supporters. Frankly, we’ve had enough of the topic of gay rights—it’s your business, do as you like, but honestly, we’re not all that interested.

Pavlos, funerals and parties

My sources, who are everywhere, told me that if there was one person who stood out, it was Geroulanos, both in the sad and happy moments. At Vasso’s funeral, he stayed from start to finish, attended the coffee gathering, talked with everyone, and even scheduled meetings with anyone who asked. At the party, he was also very open and friendly with everyone, giving off the impression that he believes 2027 is just around the corner…

Olga

Before moving on to other news, a few words about Kefalogianni’s divorce. Look, everyone in their life has the “right to divorce” and “handle their personal matters” in a way they feel is best for them and their loved ones. But Mrs. Olga, who happens to be a government minister, would do well to follow what she theoretically asked from the media, instead of turning her divorce into a theatrical production. How else can one explain the constant “announcements” in the media saying, “don’t pay attention to me,” only for her to dramatically appear in court shortly after, wearing dark sunglasses, crying in front of the cameras? We all know that if you want to avoid publicity, there are countless ways to do it. Honestly, with this soap opera over her rugs like some kind of Moiroaraki, and now with this divorce drama, the Maximos Mansion should have reined her in already. People turn their backs on a government over such small matters, not just the serious ones.

PASOK (2)

Now, let’s get back to PASOK, which remains interesting. The leader Nikos—who showed up with a proud demeanor and gaze both at the funeral and the wedding—is reportedly considering his next moves to stir things up in PASOK’s show, given that even now, at its best, it’s stuck at 14% in the polls. His “supporters,” who have adopted him in the media (whoever has eyes can see who’s covering him all day), are telling him, and they’re right, “Loosen things up a bit, man, bring in another player.” But, I’ll say it again, the leader is a bit tight-fisted in such matters. After all, it’s worked out just fine for him so far, and he was re-elected triumphantly. So I’m hearing that he’s not in a big rush to make the so-called “opening.” He saw Anna, who’s doing well after being lifted from obscurity by K.M. and becoming a PASOK figure again, but that’s about it. Geroulanos will be harder to bring in, but he can’t exactly say “no” either. After all, the people reaffirmed Nikos as the leader, so when the newly-elected president calls, you can’t totally ignore him.

No to Mitsotakis

Anyway, the proud Nikos is already—sending a signal to those who need to hear it—repeating the standard line that his supporters want to hear: “I’m not going into government with Mitsotakis, we’ve said that already.” What I’m wondering is what he’ll answer if someone asks him, “So, would you go with another right-winger from New Democracy for prime minister?” especially if that person is liked by his “supporters.” I mean, if the numbers don’t add up and Mitsotakis is forced to step down, will PASOK still say “no” to a coalition government with New Democracy? That’s a good question. Someone should ask him.

I’m here for things like this too, Stephanos-just-Stephanos

Now you might say, “You’re jumping ahead with future government coalitions and riddles, two years before the elections.” But the stage is being set not just for then, but also for now, to put pressure on the government, especially Mitsotakis, to reconcile with those he has differences with. The truth is, the equation is getting more complicated, especially when you have the Samaro-Rafinas and about ten MPs within the party pushing you on every issue. Meanwhile, Kasselakis is also offering himself, though I think he’s now beyond SYRIZA, since I don’t see him even getting near the party’s Congress. Not that the man won’t try to take over the party, its tax ID, and its funds through the organizations, etc., but I just don’t see it happening. Stephanos, however, is a much more flexible solution for a “patchwork government,” but in order to participate, he needs to form a party and get elected. So, he’s also searching for “supporters,” but the truth is, there aren’t many. The same familiar faces who could help out are those who don’t fancy K.M.

Discussions on banks’ capital participation in the Property Entity

Discussions are at a critical point regarding the operation of the Leasing and Property Buy-Back Entity for vulnerable borrowers. Finance Minister K. Hatzidakis is pushing for it, and rightly so, because the “cream” of foreclosures has already passed, and now the real difficulties will begin, while the entity’s operation has been pending for years. Let me remind you that the last tender took place in 2022, with BAIN, Fortress, CRC, and KAIMAN Hellas – Beaumont participating, but not all of them are still around today. Since January, the Ministry of Finance has been negotiating. The discussion advanced significantly in September, and a ministerial decision set a 30% discount on the purchase price from auctions or buy-back from the debtor, allowing an appraisal by an expert, among other things. Now, the negotiations have reached the most delicate and difficult point: The banks are being asked to back the plan financially, meaning they are being asked to contribute to the capital of the Entity. If the capital contribution of the banks is agreed upon, which is now under discussion, the entity could indeed start operating in the first half of 2025.

Solomonic solution for PPC’s debts

Just before the big cold hits Western Macedonia, the Ministry of Environment and Energy, in cooperation with PPC, is offering a solution to the well-known issue of district heating, for which a new chapter has been opened by the national policy of phasing out lignite. Due to PPC’s withdrawal in 2021 and the last lignite unit in the area, it was agreed between the Ministry, PPC, and the Municipal District Heating Enterprise of Ptolemaida that district heating would be powered by the ultra-modern lignite unit Ptolemaida 5. For the interim period, the solution of installing electric boilers at the Kardia unit by PPC had been selected. However, there’s nothing more permanent than temporary solutions! The energy crisis and the prohibitive cost of lignite extended the temporary electric boiler solution by three years, driving up the operational costs, which PPC absorbed since it couldn’t pass them onto consumers (for obvious reasons). As a result, accumulated debts have now reached 125 million euros. After successive meetings among the involved parties, the solution—expected to be presented today—divides the debts between the Municipality of Eordaia, PPC, and the Ministry of Environment. All three parties will contribute one-third of the unpaid debts to finally resolve the district heating Gordian knot and PPC’s financial burdens. The government even plans to fast-track the legislative procedures to solve the issue, which is expected to be voted on by Parliament in the coming days.

The (heavy) tax burden in Romania for OTE

In addition to the delayed sale of OTE’s subsidiary, Telekom Romania Mobile (TKRM), a tax audit by Romanian authorities has resulted in additional tax liabilities of 33.5 million euros. This amount stems from estimated miscalculations of VAT and income taxes, and it is expected to increase further with penalties, interest, and surcharges. This is a significant amount considering TKRM’s adjusted EBITDA (AL) was 17 million euros last year, on a revenue of 287 million euros. It’s worth noting that the fine pertains to previous fiscal years and does not affect the Group’s organic performance, although OTE will pursue legal action to overturn the tax audit’s findings. The Romanian subsidiary has turned into a headache for OTE—not only is it straining the organization’s financial results, but it’s also leading to entanglements with the tax authorities.

The “slump” of Remos-Piladakis

The company “R & P Real Estate Investments S.A.” was founded in December 2005 by the popular singer Antonis Remos and his close friend and best man, businessman Kostas Piladakis, with the aim of investing in the then-flourishing real estate market. The company’s name comes from the initials of their surnames, “R” and “P,” with Antonis Paschalidis (Remos’ real surname) serving as Chairman and K. Piladakis as Vice Chairman and CEO. The two of them, of course, have had, or at least used to have, other joint business ventures. The bet on real estate didn’t go very well, judging by the company’s results, through which they acquired, among other things, the “twin” villas in Mykonos belonging to the two friends and best men, which, if I’m not mistaken, were put up for sale. Beyond that, 30% of a 22.4-hectare plot of land owned by the company in Koropi made its “debut” on the electronic auction platform from January 2022 to September of the same year, when, after several unsuccessful auctions, it changed hands for 514,801 euros. Additionally, R & P Real Estate Investments has only posted profits in two fiscal years over the last decade, with losses in all others. As of 2021, it had fixed assets valued at 17.23 million euros, but in 2022 this dropped to 8.72 million euros and last year to 8.3 million euros. I’ve learned that according to the latest financial statements for the 2023 fiscal year, the company recorded zero turnover, just like in previous years, with “other usual income” dropping to 33,131.87 euros compared to 485,430.26 in 2022, and annual losses reaching 1.35 million euros. As for its obligations, long-term liabilities stand at 10.5 million euros and short-term at 311,391 euros, while the “debt covered by collateral amounts to 10,493,625.57 euros.” Another interesting point is that the company’s tax liabilities have not been audited by the authorities for the fiscal years from 2010 to 2023…

Melina Travlou invests in hotels

“Neptune Hospitality S.A.”: This is the new company focused on tourism-related properties, adding another link in the chain of companies within the Neptune Group, which is known for its activity in shipping. The new company, also headquartered at 5-9 Iasonos Street, where Neptune Lines is based, is a subsidiary of Neptune Global Holdings, with Mrs. Melina Travlou serving as Chairwoman and CEO, and Mr. Takis Athanasopoulos as Vice Chairman. The purposes of “Neptune Hospitality” include the construction, renovation, operation, and management of hotel units and tourist accommodations of all kinds—general, special, and alternative tourism in Greece or abroad. It also aims at the construction, renovation, operation, and exploitation of all other types of tourist facilities, including those for marine and winter sports, nature activities, restaurants, cafes, and canteens in Greece or abroad, as well as the management and exploitation of properties inside and outside Greece, and so on.

Losses for the largest Greek (private) insurance company

Following a flurry of acquisitions over the past five years and the consolidation of major players in the insurance sector into the hands of foreign investors and multinational corporations, “Minetta Insurance” is now considered the largest Greek private insurance company. It has been in the hands of the Theocharakis family for many years, with Kostas Bertsias being a valuable executive, as they try to balance amidst the tectonic changes in the market and the occasional “sirens” calling for the sale of its portfolio. This is not an easy task, as shown by the recently published financial statements signed by Vasilis Theocharakis as Chairman. While premium production may appear to have increased by 10% in 2023, the company continues to be on a loss-making trajectory. Net losses were nearly 2.15 million euros (down from 5.69 million euros in 2022), and as noted in the financial report, these losses are carried forward, now amounting to roughly 14.27 million euros in total. Consequently, the company’s equity, founded in 1973 by Panos Minettas, decreased to 37.4 million euros from 42.7 million euros a year earlier. However, the company still maintains sufficient capital to cover its required capital for the current period, with a Solvency Capital Requirement coverage ratio of 144.1% (down from 167.8% in 2022) and a Minimum Capital Requirement coverage ratio of 413.6% (down from 520.4% in 2022), in line with Solvency II requirements.

Good news for supermarkets – Bad news for tourism businesses

A combination of extended offers on basic products that attracted consumers and tourists cutting down on dining out, preferring instead to buy ready-made meals from retail stores, helped supermarkets generate an additional 230 million euros in turnover during the eight-month period from January to August! According to data from Circana research company, the turnover of organized retail in this period reached 7.776 billion euros, marking an increase of 3.2% compared to the same period in 2023. The impact of tourists on supermarkets is clearly reflected in the research, with June showing a 4.2% increase compared to last year, July with 2.5%, and August with 5.3%.

How much is a brokerage firm worth in Greece?

Mr. Aristotelis Ninios, until yesterday the vice president of Euroxx Securities, decided that, having reached the age of 52, it was time to change his life, avoid the stresses and anxieties of the stock market, and enjoy the life of a hotelier with a very interesting large investment in Schoinoussa. He decided to sell his share in Euroxx (of which he was a co-founder) to his friend and partner Giuseppe Gianno (about 3% for 1.7 million euros), another 2% to interested shipping magnates, and a further 3.39% to his friend and partner, Euroxx’s president Giorgos Politis, and other investors, within the week starting today. From the officially published data, some conclusions can be drawn: Since 3% of Euroxx was sold for 1.7 million euros, the total value (100%) of the company is estimated at over 55 million euros, or about 5 times its book value. This must be a record price for a company in the broader financial sector, setting a high bar for future moves in the industry…

Greek “invasion” in the American capital

The entire Greek delegation (government officials, bankers, economists) departs tomorrow afternoon on a United Airlines flight bound for Washington for the fall meetings of the IMF and World Bank. From the government side, the delegation is small, including Finance Minister K. Hatzidakis, SOE head Michalis Argyrou, and Public Debt Management Agency head Dimitris Tsakonas, along with two other ministry officials. The day after tomorrow, Wednesday, Kostis Hatzidakis will submit the tax bill to Parliament (reduction of taxation on tips, abolition of the business tax, tax declarations, and changes to the AADE). On his part, the president of the Public Debt Management Agency is carrying with him several optimistic studies and assessments from international private organizations, which forecast, with supporting data, that for many years to come, the state’s borrowing needs (Gross Financial Needs) will never exceed 10% of GDP, while averaging around 6.8% of GDP—a percentage that, nowadays, would be envied by all major developed economies in the world.

Attica Bank’s capital increase – Systemic bank results

And just so we don’t forget the current developments, today begins the exercise of rights for the capital increase of the new Attica Bank, while the systemic banks are preparing for their nine-month results. The third-quarter announcements will take place amidst the U.S. election fever. Piraeus will go first on November 4, followed by National Bank on the very next day—Election Day—Tuesday, November 5, with Eurobank following on Thursday, November 7, and Alpha Bank closing the cycle on Friday, November 8.

Cypriot fund managers are coming to Athens

With the central theme of “The comparative advantages of investments in Cypriot Funds and Cypriot Tailor-made Funds,” the first roadshow organized by the Cyprus Investment Funds Association (CIFA) takes place tomorrow at the Hotel Grande Bretagne in Athens. The Cypriot fund managers will present to the Greek market the elements that differentiate their investment products from the rest of Europe, naturally including Greek ones.

The new strategy of the World Bank

Watching the discussions on financial networks in the lead-up to the IMF and World Bank Summit, one can discern a new strategic direction towards emerging economies. There’s a trend to channel excess liquidity from Private Equity Funds into economies such as Turkey, Panama, Indonesia, Peru, the Philippines, Zambia, Brazil, and others. But there’s a catch: fund managers are seeking certain guarantees and interventions from the World Bank to reduce the risks and uncertainties involved in investing in these economies. The situation resembles the Bretton Woods era, except this time it’s not the banks but private investors putting in the money, with the backing of the IMF and the World Bank. Perhaps this is why JP Morgan believes that Greece will benefit more if it stays a bit longer in the “emerging capital markets” before its stock market is upgraded to the “mature” markets.

No one remembers “Black Monday” anymore

Just two days ago, on Saturday, October 19, was the 37th anniversary of the unforgettable “Black Monday” of 1987, which marked the first global financial crisis of the modern era. A crash on Wall Street that sent all stock markets into a sharp downward spiral within a few hours. The Dow Jones Industrial Average (DJIA) fell by -22.6% in just one session, a loss that remains the largest single-day drop in stock market history. On this very day, 37 years later, the U.S. stock market completed its 6th consecutive week of gains, with two of the major indices hitting record levels. The Dow Jones has gained +7.3% in the last six weeks, the S&P +8.4%, and the Nasdaq has rallied by +10.8%. All three are experiencing their best six-week stretch of 2024. While American households invest 48% of their savings in the stock market—thus directly benefiting from these record levels—it should not be overlooked that 87% of all shares are owned by the wealthiest 10% of the U.S. economy…

The problems of Europe’s “big players”

The French economy was downgraded by Scope Ratings, another warning about the state of the country’s finances and the political obstacles to curbing the growing budget deficit. Scope’s report notes that the deterioration of economic figures and the unclear political prospects in France justify the downgrade from AA to AA- with a stable outlook. France cannot hope for Germany’s cooperation in addressing its problems. Germany is suffering from two years of recession but is proud of its stable debt levels over the past 25 years. Even today, Germany would meet the outdated Maastricht Treaty rules for public debt. In contrast, France’s debt burden has multiplied, and budget deficits are increasing. The French do not want to hear about structural reforms, and they lack a stable government.