Greek bank sues Reuters over investigative report

Piraeus Bank in Athens has filed lawsuits against both the news agency and the article’s author, reporter Stephen Grey. It accuses Reuters of malicious defamation and of wishing “to harm the entire Greek banking system”.

The 2 April special report, headlined “A Greek banker’s secret property deals” said Piraeus had rented at least seven properties that were owned by a series of private investment companies directed among others by the wife and two children of the bank’s executive chairman, Michalis Sallas, and financed by Piraeus bank loans. The lawsuit states: “The bank never bought or leased any property, particularly illegal ones, from its chairman or his family.” Piraeus said the report was inaccurate and highly defamatory.

The article was based on a study by Reuters of Greek corporate records and company statements, documents filed in Greek land registries and interviews with legal, accounting and property experts. Reuters director of global communications Barb Burg said: “We continue to stand by our story. Due to the ongoing legal process, we cannot comment further at this time.”

The bank, whose stock price has fallen 97 per cent since its peak in 2007, is due to receive up to €5 billion as part of a bailout backed by European taxpayers.

The lawsuit says that the article’s publication caused the bank’s shares to tumble 14.5 per cent, representing a loss to the bank at the time of €46 million. The shares had more than recovered their value a week later before declining again. ■