Greek banker Christos Sorotos has been appointed interim chief executive officer at Bank of Cyprus, the lender under temporary control by the central bank as part of a financial aid package to the island.
Mr Sorotos, now based in the UK and with experience in corporate restructurings, takes up his duties today, the central bank said.
He had previously worked as a deputy governor at National Bank of Greece, country corporate officer for Citibank in Greece and general manager at Eurobank Greece.
Bank of Cyprus was in March placed under central bank control in a process known as “resolution”, as losses were imposed on uninsured bank deposits exceeding €100,000 to recapitalise the lender, heavily exposed to a Greek government debt writedown.
Depositors were forced to take losses to recapitalise the bank as a condition for Cyprus to receive €10bn in aid from the International Monetary Fund and the EU.
Some 37.5% of deposits not covered by the deposit guarantee scheme have already been converted into equity.
An additional 22.5% is being held as a buffer for potential conversion depending on the outcome of an independent asset valuation due by the end of June.
Source: Reuters.
