Cyprus Mail

Co-op central bank will have new boss by year’s end

THE COOPERATIVE Central Bank (CCB) will have a general manager in around 10 days, an official said on Wednesday, as the sector pushes ahead with restructuring in line with the terms of the island’s bailout.

A consultancy hired by the CCB has short-listed five candidates and is expected to choose the new general manager in 10 days, at the latest.
Before the end of the year, the CCB will also have in place a voluntary retirement scheme and executive Nicolas Hadjiyiannis cutbacks in payroll.

The cutbacks will be implemented from December, Hadjiyiannis added.

The executive did not say how many people would be leaving the bank under the retirement scheme but it has been reported previously that it aims to shed around 700 staff out of a total of 3,000 as Cyprus’ 93 co-operatives merge into 18.

Some 25 per cent of the 410 branches are expected to go.

“Our aim is to ensure the maximum number of jobs,” he said. “We recognise that any job lost would be difficult to replace in the economy.”

Using part of the €10 billion international bailout secured last March, the government has approved a €1.5 billion capital injection to cover the co-ops’ estimated capital shortfall, acquiring 99 per cent of its share capital.

The €1.5 billion capital injection has already been disbursed by the troika in the form of a bond and is currently deposited in a Central Bank of Cyprus account. It will be granted to the co-ops following approval of the sector’s restructuring plan at the end of January by the European Commission’s Directorate General on Competition.

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