Debt restructuring a catastrophy, National Insurance head says

A debt restructuring solution would be catastrophic, as it would create big problems to pension funds, insurance companies and banks, while at the same time it would block the country’s ability to accessing international markets indefinitely, Leonidas Theoklitos, president of National Insurance told reporters on Wednesday. He noted that even talking about a restructuring of the debt was not benefting.

Theoklitos announced that National Insurance intends to proceed with a share capital increase plan immediately, without offering details of the sum, in order to meet increased demands by Solvency II. He said that the specific directive would add to pressures to insurance companies to forge strong groups, while other companies will cease to exist.

National Insurance has no intention to seek takeovers and mergers as it was the leader in the market, with a great distance from the second player in the market, while National Bank (the parent company) has also not intention of selling its insurance arm.

Theoklitos said the main goal for 2011 was to significantly raise operating profits.