ECONOMY

FinMin: absorption of Greek units of Cyprus banks underway

Finance Minister Yannis Stournaras confirmed on Friday that Greece had started the ball rolling for the acquisition of Greek units of Cypriot banks.

“The process had been launched for the acquisition of Cypriot banks in Greece by a Greek banking group in close cooperation with the Central Bank of Cyprus,» Stournaras said in a written statement.

This procedure «fortifies Greece as all the deposits of citizens at Cypriot banks are absolutely safeguarded,» the statement continued, adding that state officials were «working night and day to guarantee the stability of the banking system and to find a viable solution for the economy of Cyprus and its citizens.»

The government intends to settle the issue of the Cypriot branches’ absorption on Friday, so that they can reopen next Tuesday under their new owner, which will take in the loan portfolios and deposits of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank in Greece.