ECONOMY

Restructuring expert appointed interim CEO of BoC

Greek banker Christos Sorotos has been appointed interim Chief Executive Officer at Bank of Cyprus BOC.CY, the lender under temporary control by the central bank as part of a financial aid package to the island.

Sorotos, now based in the UK and with experience in corporate restructurings, takes up his duties on Wednesday, the central bank said. He had previously worked as a deputy governor at National Bank of Greece (NBGr.AT), country corporate officer for Citibank (C.N) in Greece and general manager at Eurobank (EFGr.AT) Greece.

Bank of Cyprus was in March placed under central bank control in a process known as «resolution», as losses were imposed on uninsured bank deposits exceeding 100,000 euros (85,701.04 pounds) to recapitalize the lender, heavily exposed to a Greek government debt writedown.

Depositors were forced to take losses to recapitalize the bank as a condition for Cyprus to receive 10 billion euros in aid from the International Monetary Fund and the EU.

Some 37.5 percent of deposits not covered by the deposit guarantee scheme have already been converted into equity. An additional 22.5 percent is being held as a buffer for potential conversion depending on the outcome of an independent asset valuation due by the end of June.

[Reuters]