Cyprus Mail
BusinessCyprus

Bank of Cyprus gets a CEO

A restructuring expert has been named as CEO of the Bank of Cyprus

GREEK banker Christos Sorotos has been appointed interim Chief Executive Officer at Bank of Cyprus, the island’s biggest lender currently under temporary control by the Central Bank (CBC) as part of Cyprus’ bailout.

Sorotos, now based in the UK and with experience in corporate restructurings, takes up his duties today, the CBC 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 in administration, as losses were imposed on uninsured bank deposits exceeding €100,000 to recapitalise the lender, heavily exposed to a Greek government debt write-down.

Depositors were forced to take losses to recapitalise the bank as a condition for Cyprus to receive €10 billion in aid from the International Monetary Fund and the EU.
Some 37.5 per cent of deposits not covered by the deposit guarantee scheme have already been converted into equity.

An additional 22.5 per cent is being held as a buffer for potential conversion depending on the outcome of an independent asset valuation due by July.

Normal operation of the CBC board has also been restored after the government appointed three new members – economists Alexander Michaelides, Michael Spanos and Stelios Kiliaris.

The CBC can now go ahead with the selection of the firm that will carry out the asset valuation.

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