Greek authorities freeze bank accounts belonging to Angeliki Frangrou

Bank accounts of leading Greek shipowner Angeliki Frangou have been frozen by Greek judicial authorities investigating lending by Marfin Bank, which is now under the control of Piraeus Bank, Greece's largest bank and leading domestic lender to Greek shipping.

The investigation by a special corruption prosecutor, is examining all data on file, pertaining to Marfin Bank in recent years. The accounts of Frangou, chairman and ceo of the NYSE-listed Navios Group, have been frozen by the Athens Prosecutor's Office. It concerns accounts of Frangou and of IRF European Finance Investment.

The prosecutor's offices took action as it examines the approval and granting of funding by Marfin Bank to IRF European Finance Investments. The investigation is looking at the conditions under which the funding was made by Marfin to IRF especially issues related to the adequacy of the relevant guarantees.

The case under investigation concerns an amount of EUR178m ($200m) and relates to the period from 2006 onwards. The loans have now passed to Piraeus Bank, which has restructured its lending.

According to various sources, Piraeus Bank's loan restructuring was done with sufficient collateral and guarantees, and according to the same information, the arrangement is maintained and the loans are repaid.

Read more: Marfin facing felony charges over loan to Frangrou controlled investment firm

Greece's second largest shipowning group, the Frangou-headed Navios has a fleet of some 195 ocean-going vessels, 55 tankers, 39 container ships and 101 dry cargo ships, including 26 vessels on long-term charter to third parties. Five companies in the group are listed in New York, Navios Holdings, Navios Maritime Acquisitions, Navios Maritime Containers, Navios
Maritime Partners and Navios Midstream Partners.

The group also has major interests in logistics activities in South America including ship operations and operation of cargo terminals.

Posted 07 November 2018

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David Glass

Greece Correspondent, Seatrade Maritime