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Greek central bank chief takes pay cut

  • Greece's central bank chief George Provopoulos has cut his salary by almost a third in a bid to reduce costs at the Bank of Greece, according to a source familiar with the matter.

    In a letter to the head of the European Central Bank (ECB), Provopoulos said he had reduced his paycheck by a further 30 percent, in addition to a 20 percent pay cut he had taken in December 2009.

    "I am determined to continue this process of cost rationalization at the Bank of Greece. In this connection, I have decided to reduce my salary by an additional 30 percent following a cut of 20 percent in December 2009, bringing the cumulative decline since 2009 to 50 percent," Provopoulos was quoted as saying in the letter to ECP President Mario Draghi.

    The central bank's two deputy governors also agreed to reduce their salaries by the same percentage.

    The move comes as the ECB, the International Monetary Fund and the European Commission, known as the troika, review a $17.6 billion austerity package Greece must maintain over the next two years in order to lower its budget deficit and receive further aid payments.

    In the past two years, several other senior Greek public officials, including former Prime Minister Lucas Papademos and current president, Karolos Papoulias, have taken salary cuts as a sign of solidarity.