Piraeus buys Arab Bank Cyprus branches

Piraeus Bank has purchased the branch network of Arab Bank in Cyprus at a total cost of EUR 15 mln. The transaction, expected to be completed in early 2008 involves the 4 branches and main headquarters building with a 4600 sq. metre capacity maintained by Arab Bank in Cyprus.

Arab Bank employs 105 staff in Cyprus and according to an official announcement had total loans amounting to CYP 74 mln or EUR 126 mln and total deposits of CYP 144 mln or EUR 246 mln. In effect, Arab Bank will terminate its operations and withdraw from the Cyprus market, which has been loss making and in recent years involved a major labour dispute as Arab Bank attempted to reduce the number of employees but its redundancy plans were blocked by the hard line bank employees union, Etyk.

Piraeus Bank (Cyprus) Ltd., a 100% subsidiary of Piraeus Bank of Greece recently received a license from the Central Bank of Cyprus to carry on banking operations from Cyprus.

Piraeus Bank (Cyprus) CEO Constandinos Loizides expects the Bank to start operations by the first quarter of 2008 with 160 staff and 13 branches (including those of Arab Bank) offering full banking services.