Bank of Cyprus books EUR 100 mln in Romania loans

10 branches in 2 years, 15-20 branches in Russia

 

Bank of Cyprus has provided loans of about EUR 100 mln in the few months of its initial operations in Romania with plans to launch a full-branch network in April.

BOCY is inaugurating its Kyprou Leasing unit on Wednesday as a precursor to the ten banking branches it hopes to operate in the newest EU member state over the next two years.

The success of the leasing business in Greece, where BOCY ranks as the second biggest provider, has spurred the group to aim for niche segments in the Romanian as well as the Russian and Ukrainian markets, as the bank hopes to start with own branches in Moscow and St. Petersburg and reach a network of 15-20 branches within two years.

Prior to the bank securing final licensing in Romania, the loans provided mainly to Cypriots already active in the country and a few local enterprises, were booked through the bank’s Cyprus and Greece operations, explained Deputy Group Chief Executive Charilaos Stavrakis.

“Once our operations are up and running, we will transfer the loan portfolios to Bank of Cyprus Romania,” Stavrakis said, adding that the bank presently employs 30 people and the country manager has been recruited from the BOCY operations in Thessaloniki.

The group has maintained a portfolio of Russian clients for about 15 years, due mainly to the double-taxation avoidance agreements between Russia and Cyprus, and these clients have provided the foundation for new business there.

Group CEO Andreas Eliades said that BOCY plans takeovers and alliances mainly overseas with international operations contributing some 50% of group revenues, up from 20% a decade ago.

Eliades, who took over the bank’s helm after a decade as the head of the Bank of Cyprus operations in Greece, said that the group aims to replicate the success story of Greece, where the bank boasts a very high rate of productivity, efficiency and sales performance.

 

— Romania “above expectations”

 

Bank of Cyprus operations in Romania are recording a spectacular success with the loan book at EUR 100 mln, which is well above the bank’s most bullish expectations and well above budget.

Kypros Ellinas, Bank of Cyprus Leasing Romania General Manager told a seminar on “Investment Opportunities in Romania” in Bucharest organized by APC Pcl that the bank started operations in December and is already offering its leasing services, with the Group’s first branch in Bucharest to be inaugurated by President Tassos Papadopoulos on Wednesday.

BOC Leasing Romania is offering leasing for real estate, land, buildings, motor, equipment and machinery in addition to construction leasing. Ellinas said that Bank of Cyprus is also offering a ‘sale-and-leaseback’ package for companies and individuals with easy repayment terms of up to 20 years, in euros priced over 6 month EURIBOR and on a diminishing balance system.

“Bank of Cyprus makes the down payment for the client and among others, we also offer comprehensive insurance, as well as company registration for tax and other purposes.”

On the sidelines of the seminar, Ellinas told the Financial Mirror that there is so much demand for the Bank of Cyprus services that “it is simply beyond expectation.”

Ellinas said that Bank of Cyprus has extended loans from Cyprus or Greece for purchase of property in Romania, another service which is proving increasingly popular among Cypriot and Greek investors.