Citigroup (Citi), the third-biggest US bank by assets, plans to shut almost half its branch network in Greece, responding to the ongoing economic crisis in the country leading to a dry-up of retail banking activity.
Citi is the last major international bank with a countrywide presence in Greece, will, reportedly, cut its network from 37 to 21 branches by shutting all branches outside Athens and Thessaloniki. About 170 jobs will go, nearly a tenth of the lender’s total workforce in the country.
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A spokeswoman for Citi’s Greek operations said in a statement that the current business and economic environment in Greece "requires adaptability, flexibility and decisive management" and the lender will focus "more on investment, deposit products and credit cards".
Other foreign banks in Greece such as French lenders Credit Agricole and Societe Generale have sold the Greek businesses they bought during the country’s economy was strong and growing.
Citi, which entered Greece in 1964, had a smaller-scale presence than the French banks and did not buy a local lender.
Citi had approximately $1.2bn of locally funded loans to Greek retail customers and small businesses at the end of September 2012.
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