Greek police have arrested three people and charged them with money laudering and defrauding the state.
A businessman and two officials at Hellenic Postbank were accused of rigging a string of loans between 2007 to 2013 that cost the bank 500 million euros.
It eventually went under and was bought by Greek rival Eurobank.
Issued either with low or no interest, the bad loans account almost entirely for the bank’s current poor financial state.
The bad debt has led to 25 people being arrested, including a top financier and a media mogul.
“The Greek Central Bank of Greece and the judicial authorities are extending their investigation beyond PostBank and into other Greek banking establishments who may have used similar practices, as banking circles in Athens feel that this particular case might be only the tip of an iceberg,” reported euronews’ Giannisis Stamatis in Athens.
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