The deadline for Hellenic Bank employees who wish to accept the bank’s latest, and reportedly last, voluntary exit scheme ends today, after being announced in mid-February.

However, interest in the scheme has not reached the levels desired by the bank, according to reports that emerged on Tuesday.

Hellenic Bank aimed to reduce its workforce by approximately 400 employees through this voluntary exit plan, primarily targeting older and lower-performing staff.

According to a report from Stockwatch, which the Cyprus Mail has verified through its own sources, the number of employees who have opted to leave remains limited.

However, the same sources have also reported that there is an expectation that this figure may rise before the deadline.

The scheme is available to permanent employees of Hellenic Bank, Pancyprian Insurance Limited, and Hellenic Life Insurance Company Limited, who have at least five years of continuous service and are over the age of 35.

Under the key provisions of the scheme, the maximum lump sum compensation payable to any departing employee will not exceed €200,000 or 70 per cent of the total gross earnings the employee would have received from their departure date until their standard retirement date, whichever is lower.

Importantly, the compensation paid under the scheme will be exempt from income tax. The bank has emphasised this in various internal announcements to its staff since launching the scheme.

Hellenic Bank has made it clear that this will be the last voluntary exit scheme offered to its existing workforce and that its terms will not be subject to change.

Furthermore, the bank referenced the ongoing tax reform, noting that, among other measures, it is expected to introduce provisions for the progressive taxation of lump sum severance payments granted to employees in the public and broader public sector, as well as within banking institutions.

What is more, Hellenic Bank has, over the past few days, carried out staff relocations to address operational needs at its customer contact centres in Nicosia and Limassol.

The bank has indicated that additional transfers to centralised services are expected in the near future, with staff set to be informed shortly.

These transfers are closely linked to the bank’s broader effort to achieve the objectives of the voluntary exit plan, particularly in light of its impending merger with Eurobank.

The staff reduction forms part of the restructuring process at Hellenic Bank as it prepares for its integration with Eurobank, which already owns 93.5 per cent of the bank.

Eurobank is expected to exercise its squeeze-out right to increase its stake to 100 per cent.

The merger between Hellenic Bank and Eurobank Cyprus will result in the formation of one of the largest financial institutions in Cyprus.

*This article is a translated version of content originally published on StockWatch.