How we decide
How we decide
The Hellenic Financial Stability Fund (HFSF) was established in July 2010 (under Law 3864/2010) as a private legal entity and is not part of the public sector. It has administrative and financial autonomy, operates exclusively under private sector rules and is subject to the provisions of the applicable founding law.
HFSF objective is to contribute to the maintenance of the stability of the Greek banking system in the public interest. The first and most important rule in carrying out this objective is transparency and respect to the laws. The Fund complies with the obligations arising from or in connection with the Master Financial Facility Agreement of 15.3.2012, draft of which ratified by Law 4060/2012 and the Financial Facility Agreement of 19.8.2015, draft of which ratified by Law 4336/2015; thus, it is authorized to take all necessary measures to fully comply with these obligations and to fulfil them entirely.
The decisions that the HFSF will have to make from time to time, fall on different departments, depending on the nature of the decision itself.
The General Council’s decisions
The General Council decides on its own initiative or on a proposal from the Executive Board on the matters listed below and is entrusted with the supervision of the proper functioning and fulfilment of the Fund’s objectives. In this respect, the General Council tasks are to:
- Remain informed of the Executive Board’s actions and supervise its compliance with the founding Law and specifically with the principles of Article 2 of Law 3864/2010, as amended.
- Decide on matters relating to the provision of capital support, the exercise of voting rights and the disposal of HFSF's shareholdings.
- Approve the general policy, statutes, internal rules and organizational structure (IROS) for the management and operation of the HFSF, including the Code of Conduct for its members, the policy on conflicts of interest and insider trading, and the policy on information barriers.
- Approve the appointment of the HFSF’s senior management, including Chief Financial Officer, Chief Legal Counsel, Chief Risk Officer, Chief Investment Officer, Director of Portfolio Management, Head of Internal Audit and Head of Human Resources, as well as the HFSF’s Representative on the Boards of Directors of Banks.
- Approve the General Conditions of Employment for HFSF staff and the remuneration policy which must be competitive in order to attract and retain high quality and competent candidates. When approving the remuneration policy, the General Council must take into account the level of remuneration of staff with similar qualifications in the Greek banking system.
- Approve the annual budget of the HFSF, the annual report, other formal reports as well as the financial statements of the HFSF, and the appointment of the external auditors of the HFSF.
- Set up one or more committees composed of members of the General Council and/or other persons and define their responsibilities.
- Adopt the Rules of Procedure for the General Council and the Procurement Regulation of the HFSF, which regulate the procurement of goods and services for any procurement that falls within the values provided for in Article 23, par. 2 case I.a and par. 4 of Law 4281/2014, as an exception to the relevant provisions and subsequent procurement rules of the said Law.
- Make the decisions and exercise the other powers and functions expressly granted to the General Council by the founding law, or by any other law.
The CEO is responsible to the General Council for the execution of its decisions and for the control of the management and operation of the HFSF. The CEO or, in his/her absence, the other member replacing him/her, reports to the General Council as often as necessary, but at least ten times a year.
The Executive Board’s decisions
The Executive Board tasks are to:
- Make proposals to the General Council on the matters decided by them (Article 4 under paragraph 9 of Law 3864/2010).
- Implement the decisions of the General Council, whether based on a corresponding proposal of the Executive Board, or not.
- Take all measures necessary for the management or operation of the Fund. This includes the powers and responsibilities of the Fund (Article 2 of Law 3864/2010), the procurement of goods and services, the entering into contractual obligations on behalf of the HFSF, the appointment of the staff and advisors of the Fund and the general representation of the HFSF.
- Delegate powers to one of its members or to the HFSF staff in accordance with the conditions adopted by the General Council and taking particular care to avoid conflicts of interest, provided that the Chief Executive Officer exercises his/her powers in accordance with the HFSF law. The Executive Board appoints a team to support the tasks of its member responsible for strengthening the role of the HFSF in facilitating the resolution of Non-Performing Loans.
- Exercise every power and duty that is expressly provided by this law or any other law.
- Represent the HFSF in and out of court and bind it vis-a-vis third parties.
- Exercise all other powers not expressly granted to the General Council.
Any power given to the Fund under this or any other law, will also be delegated to the Executive Board, unless expressly reserved for the General Council.