-Greetings, in the aftermath of the recent budget debate and its approval, I am jotting down some thoughts and observations. So, first of all, everyone is wondering why bankers had to wait for the government to legislate in order to cut fees that cost no more than 35 million euros per bank when their profits range from 800 million to 1 billion euros each. Furthermore, I hear that the Ministry of Finance is exploring ways to assist the approximately 200,000 borrowers with loans in Swiss francs, who have been trapped for nearly two decades, endlessly paying installments and surcharges. So, instead of giving up these relatively small amounts for the fees, they ended up with another 100 million euros for schools and about 100 more for the real estate entity—essentially a 350-million-euro tab!

PASOK
I heard criticism from M.M. that Nikos A., in his speech, was extreme à la SYRIZA, but overall, I think his stance and presence are steadily improving, as is PASOK’s statement after K.M.’s measures, saying, “… we pushed for these measures to be taken regarding the banks.” I think it was a reasonable stance. Don’t expect miracles…

No More Spartans
I also asked M.M., in light of various independent MPs, including Spartans, voting on the budget, if anything is at play. “No, we cannot accept a Spartan into ND because they were aligned with Kasidiaris,” I was told.

State Funding Cutoff…
Speaking of “Spartans,” I remembered that there is already a proposed amendment ready to suspend state funding for their party, drafted by Minister of Interior Theodoros Livanios. The regulation was submitted to Parliament today for a vote in the coming days and ties the reasons for suspending state funding to the recent decision by the Supreme Court’s Plenary, which ruled that the real leader of the organization is the imprisoned Ilias Kasidiaris.

What the Lebanese Want
K.M.’s visit to Lebanon was not merely symbolic but had substance, as we aim to strengthen our presence, and the Lebanese are seeking support for their Armed Forces, tasked with enforcing the ceasefire with Israel at the border. Those in the know tell me that the head of the Armed Forces, Joseph Aoun, is a “player,” and the Prime Minister met him during the lunch in Beirut while also having talks with Greece’s Chief of Defence, Houpis, in a parallel meeting. It is not unlikely that an Athens-Beirut MoU on military assistance may soon emerge between the two staffs. The Lebanese certainly want training and spare parts for their military infrastructure.

From Ioannina to Lapland
Christmas may be around the corner, but Mitsotakis’ schedule remains packed. On Wednesday morning, he will be in Ioannina for the signing of the Ioannina-Kalpaki project (Epirus is considered neglected in terms of infrastructure). A government delegation will already be there starting today. Immediately afterward, he heads to Brussels and then straight to… Lapland, to the village of Saariselkä in the Arctic Circle. Finnish Prime Minister Petteri Orpo is hosting a closed summit—a retreat for Northern and Southern leaders—with Mitsotakis, Meloni, Swedish PM Kristersson, and EU High Representative for Foreign Affairs Kaja Kallas attending. The leaders will discuss security, defense, and migration while temperatures outside will hit… -15 degrees. Naturally, the leaders will enjoy plenty of relaxed moments, as is customary in such retreats, along with outdoor activities, so a good jacket is required. K.M. will return on Sunday from the cold, with the invitation having been sent back in September.

Granting Greek Citizenship to Members of the Royal Family
The process for granting Greek citizenship to members of the royal family is expected to begin in the coming days. According to reliable sources, the institutional framework to be followed was established by PASOK’s 1994 law, which sets three conditions for restoring citizenship to the Glücksburgs. The first condition requires an explicit and unconditional declaration of respect for the Constitution, acceptance, and acknowledgment of the system of Parliamentary Republic and the result of the December 8, 1974 referendum. According to sources, the relevant declaration will be submitted to the Athens Registrar on Friday, December 20, by Nikolaos and Pavlos Glücksburg, but not by the former king’s wife. This will be followed by a renunciation of any claims and registration in the relevant municipal records.

Masdar’s Public Offer
The submission of the prospectus for Masdar’s mandatory public offer for shares in TERNA Energy is expected any day now, within the week, to the Capital Market Commission. The legal deadline for submitting the prospectus is 20 days from the acquisition of shares, which in Masdar’s case took place on November 28.

The Back-and-Forth at OTE

People are coming and going at OTE. The new Nebis administration is preparing new organizational charts and the broader management team composition, which will be accompanied by significant personnel reshuffles, as it is said. In this context, a three-day retreat in the Peloponnese took place, with the agenda featuring extensive presentations of the 2025 operating plans, departmental briefings, and so on. However, these changes, coupled with the very high demand in the market for experienced executives, are also leading to departures from OTE, often towards destinations such as DEI and beyond. Two senior executives are preparing to change workplaces, leaving critical positions in areas like data protection and technical services for mobile and fixed network telephony. It is noted that OTE has already seen the departure of St. Theocharopoulos (former Chief Technology and Operations Officer) and G. Athanasopoulos (Chief Operations and IT Systems Officer), with G. Tsonis and G. Vitzileos taking over as Chief Technology Officer and Chief Information Technology Officer for the group, respectively. At the same time, the role of Thanasis Stratos (Chief Customer Operations Officer for OTE Group) has been upgraded, as he takes on the responsibility for E-Value and CTS. Meanwhile, by 2025, updates are expected on the “T” brand of parent company Telekom, which OTE increasingly adopts.

Changing of the Guard at JTI

Japan Tobacco International (JTI) is upgrading its Greek subsidiary. Specifically, these days, the Greek arm of JTI, apart from Cyprus, is also taking over the Israeli market. This upgrade comes along with a change in leadership, as the current CEO, L. Zigoslou, departs and is succeeded by the Swiss Z. Neuha, who was previously head of operations in Israel.

Fourlis Group’s Continued “Hostage” Situation

For the 16th day, Fourlis Group’s electronic systems, which suffered a ransomware cyberattack in early December, are struggling and operating with significant deficiencies. The cyber-extortionists have crippled the group’s central IT infrastructure with malware, leaving IKEA’s e-shop and the group’s customer management systems in Greece, Cyprus, Bulgaria, and Romania non-operational. Despite the efforts of the group’s executives, in cooperation with the relevant authorities, the network issues have not been fully resolved, creating a void during the busiest commercial period of the year. Intersport stores are also facing problems. The group assures, following collaboration with the Data Protection Authority, that no customer data has been leaked. However, it is obvious that negotiations are still ongoing with the digital criminals who are holding Fourlis’ systems hostage, demanding a ransom for their release. Fortunately, the group’s stock on the stock exchange does not seem to be affected. It remains below the €4 level, with a market capitalization of €198.7 million, approximately the same as in early December.

Kaizen Closer to the “26-26” Goal

Kaizen Gaming now operates in a total of 18 markets through its international brand, Betano. The latest additions to its portfolio include Mexico, Argentina, the United Kingdom, Denmark, and Colombia. This brings Kaizen closer to its “Kaizen 26-26” target, which aims for operations in 26 markets by 2026. Particularly in Latin America, the game-tech company has accelerated its growth, becoming the title sponsor of the two largest domestic leagues in Brazil (Brasileirão Betano) and Argentina. Developments are also expected in Brazil, as starting next year, Kaizen will be among the first companies to receive an official license for the online market.

Metlen Moves Up a Level

If METLEN entered the London Stock Exchange today, it would rank 91st in terms of market capitalization, 91st in average daily trading value (ADTV), while based on the expected 2024 results, it would rank 54th in terms of both revenue and EBITDA, and 47th in terms of net profits. At METLEN, they see the group’s presence on the London Stock Exchange as a platform for further growth and collaborations. It is a step that demonstrates METLEN’s commitment to its value-creation strategy for shareholders, as London provides an ideal environment for dynamic companies. As Evangelos Mytilineos stated, “METLEN has had a presence in the UK and international markets for many years. We believe that listing on the London Stock Exchange will benefit both METLEN and its shareholders.”

Task Force of the Land Registry in Crete

Anyone who has visited Crete even once will have no trouble understanding the chaos surrounding property ownership, with pastures, plots of land, agricultural, and urban houses. The Ministry of Digital Governance is trying to bring order to this chaos through the Land Registry. The deadline for land registration, especially in Crete—but also in Halkidiki—expires on December 20th, and these days panic reigns at the Land Registry Office of Heraklion, with incredible scenes of overcrowding and personal disputes. Cretans are rushing en masse to resolve years-long pending issues at the mortgage offices, despite the existence of a digital platform. The reasons for the necessary physical presence are many. Issues from the distant past arise as contracts signed in previous years were not submitted in time to the mortgage offices. The Land Registry reinforced the Heraklion office with 3 additional cash desks and simultaneously sent a special task force from Athens, with experienced employees to resolve issues on the spot. A specialized team of 22 legal professionals from the Hellenic Land Registry is working remotely to conduct legal checks. Normally, this job would have been handled by Cretan lawyers, which is why a special fund had been allocated for the training of 44 lawyers from the Heraklion Bar Association. However, as of last Friday, only 3 (!) lawyers showed up to assist the office’s services. Despite official denials, the word “extension” is whispered on everyone’s lips, as it currently appears that at least 2,000 property cases remain pending on the island.

Early Debt Repayment

Michalis Argyrou, as head of the Council of Economic Advisors, had a particular sensitivity to debt management, something he will obviously continue in his new role as head of the Prime Minister’s Economic Office. He maintains a good relationship with Dimitris Tsakonas from PDMA (Public Debt Management Agency), who has prepared the plan for the early repayment of loans amounting to €7.9 billion (from the first memorandum debt) using the €15.7 billion “buffer” from the ESM loans given to Greece in the summer of 2018. Greece will use €5 billion from the €15.7 billion to prepay part of the bilateral loans of the 1st Memorandum (GLF), worth €7.93 billion. The remaining €2.93 billion (5 + 2.93 billion) will come from cash reserves. The remainder of the “buffer” will be gradually utilized until 2026.

PPC Strives for Greater Investment Flexibility

HEDNO (Hellenic Electricity Distribution Network Operator) has submitted a proposal to the Regulatory Authority for Energy and Water to adjust the WACC, the fair return for the new regulatory period 2025-2028, to 8.2% from the current 7.66% set in the previous WACC for the Operator. The implementation of the WACC (Weighted Average Cost of Capital) for revenue calculation in an energy project, such as an electrical interconnection, is critical for evaluating the project’s economic viability. The Weighted Average Cost of Capital is a financial indicator used to estimate a business’s financing cost. It represents the minimum return a company must achieve to satisfy its investors, factoring in the costs of various capital sources such as loans, preferred shares, and equity. It is not the profit margin, although the cost of capital obviously impacts profitability. Indirectly, PPC’s management is trying to improve its own flexibility margins for investments already planned. Over the past month, PPC’s stock has faced pressure from investors exploiting its high liquidity and a +9.5% increase since the beginning of the year. Despite the recent cancellation of 12.73 million treasury shares, 369,270,000 common registered PPC shares remain in circulation today.

Pressure on Powell… to Raise Interest Rates

As we mentioned yesterday, markets have already priced in at 91% a quarter-point rate cut in the dollar tomorrow, primarily to reduce the burden on the federal budget in managing the enormous $34 trillion public debt. At the same time, however, in a month’s time, the U.S. will have a new administration that promotes the “strong dollar” policy, which demands high interest rates. Since yesterday, analyses are circulating in the U.S. market regarding an “inflation rebound” and a repeat of the “1970s mistake,” meaning the “FED’s haste” to cut rates while inflation shows upward trends. These analyses highlight measurements of inflation’s resilience, which is now far above the FED’s 2% target. The Atlanta FED’s Core Sticky CPI Index has stabilized close to 4%. Core Inflation has remained at 3.3% for many months. The three-month annualized core inflation has now returned to the “worrying” 4%. The six-month annualized core CPI fell to 2.5% before recovering to 3% now. According to all these analysts who are already “pressuring” for a rate hike, the one-month, three-month, and six-month core PCE inflation figures are on a steady rise, which explains the recent strength of gold.