Bank of Crete
Encyclopedia
Following the departure of the Ottoman forces in December 1898, the Cretan government under Eleftherios Venizelos
established the Bank of Crete with the assistance of the National Bank of Greece
. The bank received the exclusive privilege, for thirty years, of issuing banknotes in the island of Crete
. The National Bank of Greece acquired the Bank of Crete in 1919. At its height, the bank operated some 86 branches in all major Greek cities and a representative office in London. A decade or so after the Koskotas Scandal the National Bank of Greece
sold the bank to EFG Eurobank in a privatization in 1999.
, bought the bank and they both shot to fame, or rather infamy, thanks to the bank's involvement in a major scandal in Greece in the late 1980s.
Specifically in November 1988, a shortfall of US$132 million was discovered in the Bank of Crete some months after bank chairman Koskotas, a Greek-American millionaire entrepreneur under investigation for large-scale financial crime, had fled the country. In the months that followed, alleged connections between Koskotas and the PASOK
government, and even with prime minister Andreas Papandreou
himself, brought the resignations of several ministers and demands for a vote of no confidence in the government. Papandreou was acquitted of criminal charges relating to the scandal in 1992.
Eleftherios Venizelos
Eleftherios Venizelos was an eminent Greek revolutionary, a prominent and illustrious statesman as well as a charismatic leader in the early 20th century. Elected several times as Prime Minister of Greece and served from 1910 to 1920 and from 1928 to 1932...
established the Bank of Crete with the assistance of the National Bank of Greece
National Bank of Greece
The National Bank of Greece is the oldest and largest commercial banking group in Greece. The group has a particularly strong presence in Southeastern Europe and the Eastern Mediterranean...
. The bank received the exclusive privilege, for thirty years, of issuing banknotes in the island of Crete
Crete
Crete is the largest and most populous of the Greek islands, the fifth largest island in the Mediterranean Sea, and one of the thirteen administrative regions of Greece. It forms a significant part of the economy and cultural heritage of Greece while retaining its own local cultural traits...
. The National Bank of Greece acquired the Bank of Crete in 1919. At its height, the bank operated some 86 branches in all major Greek cities and a representative office in London. A decade or so after the Koskotas Scandal the National Bank of Greece
National Bank of Greece
The National Bank of Greece is the oldest and largest commercial banking group in Greece. The group has a particularly strong presence in Southeastern Europe and the Eastern Mediterranean...
sold the bank to EFG Eurobank in a privatization in 1999.
The Koskotas Scandal
An Greek-American businessman, George KoskotasGeorge Koskotas
George Koskotas is a former banker and publisher who spearheaded a financial scandal that brought down the PASOK government in 1989.Koskotas was born in Greece on October 5, 1954. He migrated to the United States with his parents in 1970. Koskotas grew up in the United States, returned to Greece...
, bought the bank and they both shot to fame, or rather infamy, thanks to the bank's involvement in a major scandal in Greece in the late 1980s.
Specifically in November 1988, a shortfall of US$132 million was discovered in the Bank of Crete some months after bank chairman Koskotas, a Greek-American millionaire entrepreneur under investigation for large-scale financial crime, had fled the country. In the months that followed, alleged connections between Koskotas and the PASOK
Panhellenic Socialist Movement
The Panhellenic Socialist Movement , known mostly by its acronym PASOK , is one of the two major political parties in Greece. Founded on 3 September 1974 by Andreas Papandreou, in 1981 PASOK became Greece's first social democratic party to win a majority in parliament.The party is a socialist party...
government, and even with prime minister Andreas Papandreou
Andreas Papandreou
Andreas G. Papandreou ; 5 February 1919 – 23 June 1996) was a Greek economist, a socialist politician and a dominant figure in Greek politics. The son of Georgios Papandreou, Andreas was a Harvard-trained academic...
himself, brought the resignations of several ministers and demands for a vote of no confidence in the government. Papandreou was acquitted of criminal charges relating to the scandal in 1992.