19/05/2003 09:26
Official: SEC was made aware of the case
The Bank of Cyprus has accumulated losses of less than EUR 13 million from its unsuccessful investment to the Greek IT company Zachs (BOC acquired 60% of its share capital), which is now on bankruptcy proceedings, a BOC official told StockWatch, clarifying that the total sum includes loans granted to Zachs.
A large part of losses is included in the provision of impairment of investments in the financial statements for 2002 and the bad debt provisions in the Q1 results for 2003. It is noted that before the announcement of the results, the Securities and Exchange Commission (SEC) judged that “it is not necessary for the Bank to proceed to a profit warning”.
The BOC official assured that the Bank of Cyprus keeps up with its investments and takes all the proper measures to reduce risks, although investments in the form of venture capital entail a considerable risk.
The Bank is already conducting an internal audit for the said investment.
The Bank of Cyprus has accumulated losses of less than EUR 13 million from its unsuccessful investment to the Greek IT company Zachs (BOC acquired 60% of its share capital), which is now on bankruptcy proceedings, a BOC official told StockWatch, clarifying that the total sum includes loans granted to Zachs.
A large part of losses is included in the provision of impairment of investments in the financial statements for 2002 and the bad debt provisions in the Q1 results for 2003. It is noted that before the announcement of the results, the Securities and Exchange Commission (SEC) judged that “it is not necessary for the Bank to proceed to a profit warning”.
The BOC official assured that the Bank of Cyprus keeps up with its investments and takes all the proper measures to reduce risks, although investments in the form of venture capital entail a considerable risk.
The Bank is already conducting an internal audit for the said investment.
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