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25.03.2014

Soon completed the sale of Ukrainian "daughter" of the Bank of Cyprus

Bank of Cyprus plans in a few weeks to finalize the sale of its loss-making structures in Ukraine - PJSC Bank of Cyprus - Russian consortium "Alpha groups".

This was announced on Monday told Reuters CEO John largest Cypriot bank Khurikau. On the decision to sell 99,77% of its subsidiary, 225 million Bank of Cyprus announced 31 January.

"We hope that the Ukrainian transaction closes in the coming weeks on the agreed terms and conditions," - said Khurikau.

Governor of the Bank of Cyprus also reported that the U.S. imposed sanctions against Russia did not affect the operations of the bank's clients. He noted that the bank does not see himself as the owner of significant long-term Russian assets. "While sanctions will not have any impact on the company or business who has a business relationship with us in Cyprus", - stressed Khurikau.

Referring to the largest foreign structure of the Bank of Cyprus, the Russian Uniastrum Bank, Khurikan noted that this bank is a completely independent enterprise, two thirds of which is financed from local deposits. Long before the events in Ukraine, the management of the Cyprus bank considered the sale of Uniastrum Bank as part of the restructuring process. Answering the question about the fate of the bank, Khurikan said that, in his opinion, the Bank of Cyprus should not be the owner of Uniastrum Bank in the long term, but in the next few years, he will continue to own them.

The Bank of Cyprus was at the center of the financial crisis in March 2013, when, in exchange for rendering credit assistance to the republic, the Eurogroup decided to "shear" uninsured deposits in it and in the second largest Cyprus national bank, which was later liquidated. At the end of summer last year, the Bank of Cyprus completed the procedure of "haircuts" 47,5% of deposits, funds from which were directed mainly to its recapitalization. Depositors received shares of the bank in exchange, which completely changed its shareholder structure. Since a large number of Russians were among the new owners of the credit organization, 16 representatives of Russia were elected to the bank's board of directors from 6 members, and the former head of MMC Norilsk Nickel Vladimir Strzhalkovsky became deputy chairman of the board. At present, the number of Russian directors is 5 from 15 after the release of Igor Lozhevsky, Vice President of Deutsche Bank's Eastern Europe division, in October of the year 2013.

Khurikau Tuesday went to Moscow, where he will participate in a scheduled meeting of the Board of Directors of Bank of Cyprus.

A source:

Tags: Cyprus Economy, Banking, Ukraine, Russia