22/05/2013 10:55
International giant Blackrock is expected to undertake the due diligence of Bank of Cyprus.
Blackrock seems to have submitted the lowest bid of the four houses left on the short list of the Central Bank.
The due diligence should be completed by the end of June and the outcome will determine the final amount of "haircut" of uninsured deposits of Bank of Cyprus.
The minimum rate of exchange of deposits to shares is 37.5% and, based on the decrees issued in March, it may reach up to 60%.
The appointment of the firm stumbled at the appointment of the Board of the Central Bank, which has to approve the item for its payment.
Since the appointment of the Board does not seem to be solved soon, the CB Governor will assign the project to the lowest bidder, provided that Blackrock will accept the non advance payment of 20% of the fee provided by the bid documents.
The fee can be paid upon approval of the item by the Board of the CB.
The assignment of the due diligence to Blackrock is expected to put the Bank in orbit leaving the consolidation regime.
Under the existing legislation, the Bank can not exit this regime before finalizing the "haircut" of uninsured deposits.
Appointment of CEO
The Board of Directors of Bank of Cyprus will meet today to examine another issue that should lead to normalization, that of the appointment of deputy CEO.
The two names to be discussed thoroughly at today’s meeting are those of Michalis Kolakides and Christos Christou.
Mr. Kolakides is a banking executive of Eurobank and has worked for years in other Greek and foreign banks.
Mr. Christou worked for seven years at the European Bank for Reconstruction and Development (EBRD) and has significant experience in investments and corporate restructuring.
The Board, in which there seem to be different trends, is expected to send its recommendation to the CB for approval.
The candidate to be chosen will negotiate with the bank the duration and the economic part of the contract, which will determine whether the appointment will be finalized or not.
Blackrock seems to have submitted the lowest bid of the four houses left on the short list of the Central Bank.
The due diligence should be completed by the end of June and the outcome will determine the final amount of "haircut" of uninsured deposits of Bank of Cyprus.
The minimum rate of exchange of deposits to shares is 37.5% and, based on the decrees issued in March, it may reach up to 60%.
The appointment of the firm stumbled at the appointment of the Board of the Central Bank, which has to approve the item for its payment.
Since the appointment of the Board does not seem to be solved soon, the CB Governor will assign the project to the lowest bidder, provided that Blackrock will accept the non advance payment of 20% of the fee provided by the bid documents.
The fee can be paid upon approval of the item by the Board of the CB.
The assignment of the due diligence to Blackrock is expected to put the Bank in orbit leaving the consolidation regime.
Under the existing legislation, the Bank can not exit this regime before finalizing the "haircut" of uninsured deposits.
Appointment of CEO
The Board of Directors of Bank of Cyprus will meet today to examine another issue that should lead to normalization, that of the appointment of deputy CEO.
The two names to be discussed thoroughly at today’s meeting are those of Michalis Kolakides and Christos Christou.
Mr. Kolakides is a banking executive of Eurobank and has worked for years in other Greek and foreign banks.
Mr. Christou worked for seven years at the European Bank for Reconstruction and Development (EBRD) and has significant experience in investments and corporate restructuring.
The Board, in which there seem to be different trends, is expected to send its recommendation to the CB for approval.
The candidate to be chosen will negotiate with the bank the duration and the economic part of the contract, which will determine whether the appointment will be finalized or not.
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