‘Success fee’ waived by advisers to Nicosia
Consultants involved in restructuring Cyprus’s stricken banking sector – involving depositors footing the recapitalization bill – have told the island’s central bank they will not press for a success fee of almost 5 million euros.
The Cypriot central bank has been at the center of a storm this week after media disclosures of a March agreement between its governor, Panicos Demetriades, and consultants Alvarez & Marsal.
The consultants had sought a percentage of the amount raised from the recapitalization of Cypriot banks.
That recapitalization had enraged many ordinary Cypriots, who were forced to forfeit savings in the affected banks.
Documents compiled by the Cypriot central bank legal adviser, previously leaked to Cypriot media, said the consultants were seeking 4.75 million euros from Cypriot authorities, over and above their standard fee.
[Reuters]
