Cyprus

Cyprus Popular Bank board reviews restructuring plan

by fm

28th August 2012

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1 min read

The new Restructuring Plan for the Cyprus Popular Bank, prepared by external consultants KPMG, was officially presented on Tuesday before the Board of Directors.

No statements were made after the five-hour long Board meeting.

The preparation of the Bank’s Restructuring Plan was included in a decree, issued last May by Finance Minister Vassos Shiarly.

According to the decree, the Cyprus Central Bank, after consultations with the Ministry of Finance and the Cyprus Popular Bank, will evaluate the Restructuring Plan and if it considers it appropriate and feasible, it will communicate it to the Finance Ministry.

The Ministry, within six months, will submit the plan to the European Commission for approval.

The decree partly outlines the terms of the restructuring plan, which provide for a 10% reduction in staff costs in 2012 and 8% in 2013, scaled salary cuts amounting to 12.5% after consultation with trade unions, and 7% reduction in operating expenses.