Cyprus’ Central Bank has appointed global management consultants Oliver Wyman as advisers on the banking sector restructuring it must complete under its international bailout.
Oliver Wyman were appointed mainly to assist with the restructuring of Bank of Cyprus, a central bank spokeswoman said. Bank of Cyprus, the island’s largest lender, absorbed part of now-defunct Laiki Bank earlier this year.
Large depositors of Bank of Cyprus were forced to forfeit 47.5 per cent of savings exceeding the insurable threshold of 100,000 euros to help recapitalise the Greece-exposed lender in March.
The conversion, a first in the euro zone debt crisis which had until that point used money from taxpayers rather than depositors to bail-out distressed banks, radically changed the ownership structure of the lender, making depositors its key shareholders.
Bank of Cyprus also assumed some of the assets of Laiki, shut down under a 10 billion euro bailout programme Cyprus signed up to with lenders from the International Monetary Fund and the European Union. (Reuters)