The first priority for the Bank of Cyprus (BoC) is the strengthening of its administrative organization and hierarchical structure, interim CEO Christos Sorotos said here today.
Sorotos officially assumed Wednesday his new duties and met with the Governor of the Central Bank of Cyprus (CBC).
In statements after the meeting, at the Central Bank, Sorotos said that he agreed with the CBC Board to have an almost daily cooperation.
“We start from today, without further delay” the interim CEO said, noting that “we will implement what is implemented in similar cases in other parts of the world”.
He said he disagreed that the Bank of Cyprus was a “unique case”, noting that all banks function in a similar way, “they care for their shareholders and have excellent relations with the regulator”.
He also noted that reducing the administrative cost was an immediate priority.
Sorotos was appointed interim CEO of the Bank of Cyprus on Tuesday by the CBC and officially assumed his duties today.
The BoC is currently undergoing a resolution process, following a Eurogroup decision to impose losses on uninsured deposits, as part of a €10 billion bailout financial assistance to Cyprus.
Along with the Bank’s interim Board, Sorotos, a former Deputy Governor of Bank of Greece and Country Corporate Officer of CITIBank for Greece, will draft a restructuring plan for BoC and will take the administrative reins of the Bank until the shareholders General Meeting which will appoint the new Board and the Bank’s senior management.
The Eurozone Finance Ministers, collectively known as the Eurogroup, decided to provide a €10 billion financial assistance to Cyprus, after imposing losses to uninsured bank deposits in a bid to recapitalize the island`s troubled banking sector, heavily exposed in Greece. As part of bailout, Bank of Cyprus, the island`s largest lender, absorbed the good part of Cyprus Popular Bank (insured deposits and loans) which will be wound. Furthermore, 27.5% of uninsured deposits in BoC have been converted into equity, whereas an additional 22.5% remains frozen until an evaluation of the Bank`s assets.
