The trial between the Bank of Greece and Olympiakos went underway today in the Court of Appeal in Piraeus which is related to the 1.050.000 million CHF from the transfer of Agapios Kaltaveridis to Olympiakos in 1988, under the presidency of Giorgos Koskotas.
This is the last part of a law battle between the Greek State (as the Bank of Crete does not exist anymore) and Olympiakos, who are trying for many years to win time and delay the repayment of the debt.
But which are Olympiakos's debts to the Greek State?
After Koskotas's scandal which had to do with the misappropriation of 32 billion drachmas from the Bank of Crete, the “good” part of the bank is being bought by Giannis Latsis and the Eurobank, and the “bad” part of the bank goes to the Greek State and the Bank of Greece, which starts to clear up all the abeyances and among others leads Olympiakos to the trial.
After 25 years the High Court of Greece issued a statement that Olympiakos owe 608 million drachmas to the Greek State and 8.125.000 German marks. If we divert this sum to euros we talk about 1,8 million and 4,2 million euros respectively. Overall 6 million euros which are a little bit more than what the former Olympiakos chairman, Koskotas paid to bring Lajos Detari to the club. In fact, according to the High Court of Greece, the Olympiakos's debt to the Greek State involves the Detari's transfer as well, which seems to have gone through by the Bank of Crete's money!
Olympiakos appealed to the High Court of Greece but the trial knocked it back, issuing a final decision for all the others, apart from Kaltaveridis's case, which is a fee in the region of 950,000 euros. This relates to the case which got underway in the trial today and a decision is expected until the end of the year.
Olympiakos accuse the Bank for co-liability in the case, but the so far decisions in favour of the Greek State are not much ambitious for the final result.
Nevertheless, Olympiakos owe 6 million euros to the Greek State, which may go up to 7 million euros, if they do not win Kaltaveridis's case. According to the Greek State, this sum along with the interests the last 25 years, may meet a fee of 40 million euros. This is a very big sum, that Olympiakos have to pay back to the Greek State, which could cause a serious blow to Olympiakos financially.
The History of the scandal
In 1988, after a check in the Bank of Crete (which was owned by Olympiakos's president Giorgos Koskotas), one of the biggest scandals of Greece broke in relation with the misappropriation of 32 billion drachmas. Members of the government and the Prime Minister, Andreas Papandreou were accused for involvement in the scandal.
Koskotas was banned with 25 years in jail and Papandreou was leaded from Mitsotakis's government to the trial, where he was finally released.
From the rest of the government's members who were involved in the scandal, Panagiotis Roumeliotis did not go to trial because he was member of the European Parliament at the time and the European Parliamened rejected to raise his immunity. Menios Koutsogiorgas died unexpectedly during the trial, while Dimitris Tsovolas and Giorgos Petsos were accused for breaking the law over the minister's responsibility. Their bans were 2,5 years in jail and 10 months in jail respectively, as their political rights had been taken for three and two years respectively.
The trial started in March 1991 and it was concluded in January 1992.