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BOC: Zachs investigation to be completed shortly

17/07/2003 11:52
General Economic Manager of the Bank of Cyprus, Yiannis Kypri told StockWatch on Thursday that the investigation on the unsuccessful investment of the Bank of Cyprus in the Greek IT company Zachs (acquired 60% of its share capital), which is on bankruptcy proceedings, will be completed shortly.

Mr. Kypri assured that responsibility will be assigned where necessary and rejected allegations that members of the company that carried out the investigation depend on BOC high ranking officials.

“It is an independent audit service, which operates pursuant to the instructions of the Central Bank and the Securities and Exchange Commission and within the framework of the Corporate Governance Code”, Mr. Kypri told “SW”.


BOC accumulated losses of millions of pounds from the unsuccessful investment in the Greek company Zachs. BOC high ranking officials said that losses do not exceed EUR 13 million (CYP 7.5 million), including 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.


Before the announcement of the three-month results 2003, BOC had submitted to the SEC all figures with regard to the issue. “The Securities and Exchange Commission considered the potential losses from BOC's investment in the Greek IT company Zachs to be insignificant compared to the size of the Group, and hence, did not ask the Bank of Cyprus to make issue a warning to its shareholders”, SEC’s Chairman, Marios Clerides, had told StockWatch.