04/02/2016 10:02
Decisions have been taken at the Bank of Cyprus and the management is expected to announce a new voluntary retirement plan within the next few days.
The Bank's management has already informed the leadership of ETYK about the decision taken, without providing any details on the provisions of the plan.
The draft has been completed except a certain legal process which is expected to be done by today.
The staff will be informed of all the details of the plan with an internal circular to be issued by the CEO John Hourican.
The management, according to information coming from BOCY top executives , assured the unions’ side that the plan will be voluntary and will be addressed to all staff.
The basic aspects of BOCY’s third retirement plan are expected to be identical to those of the two previous plans with a slightly different philosophy as regards the amount of compensation based on the years of service of employees.
The management has allowed to leak that incentives to be given to the staff will be attractive, particularly for employees over 50 years.
At the same time, ways are examined for the compensation to be paid to employees to be tax-free.
This incentive was given to employees of the Hellenic Bank who retired under the recent voluntary retirement plan. It seems that this practice will be also adopted in the case of the Bank of Cyprus.
The Bank's restructuring plan that is implemented following the dramatic events of March 2013 with a duration of four years, provides for the retirement of about 200 more employees.
However the management hopes that more people will join the plan.
In January 2013, 229 people had left the Bank with the first voluntary retirement plan.
In August of the same year 1370 people had left under the second voluntary retirement plan.
Today BOCY employs around 4,057 people. A large number of employees come from the former Laiki Bank.
The Bank of Cyprus warned last Tuesday that it will record losses of €400 mn in 2015, due to additional provisions of €600 mn it was forced to assume by ECB.
Based on its preliminary results the bank will not need any capital as its key capital ratio remains above the supervisory level of 11.75%.
The Bank's management has already informed the leadership of ETYK about the decision taken, without providing any details on the provisions of the plan.
The draft has been completed except a certain legal process which is expected to be done by today.
The staff will be informed of all the details of the plan with an internal circular to be issued by the CEO John Hourican.
The management, according to information coming from BOCY top executives , assured the unions’ side that the plan will be voluntary and will be addressed to all staff.
The basic aspects of BOCY’s third retirement plan are expected to be identical to those of the two previous plans with a slightly different philosophy as regards the amount of compensation based on the years of service of employees.
The management has allowed to leak that incentives to be given to the staff will be attractive, particularly for employees over 50 years.
At the same time, ways are examined for the compensation to be paid to employees to be tax-free.
This incentive was given to employees of the Hellenic Bank who retired under the recent voluntary retirement plan. It seems that this practice will be also adopted in the case of the Bank of Cyprus.
The Bank's restructuring plan that is implemented following the dramatic events of March 2013 with a duration of four years, provides for the retirement of about 200 more employees.
However the management hopes that more people will join the plan.
In January 2013, 229 people had left the Bank with the first voluntary retirement plan.
In August of the same year 1370 people had left under the second voluntary retirement plan.
Today BOCY employs around 4,057 people. A large number of employees come from the former Laiki Bank.
The Bank of Cyprus warned last Tuesday that it will record losses of €400 mn in 2015, due to additional provisions of €600 mn it was forced to assume by ECB.
Based on its preliminary results the bank will not need any capital as its key capital ratio remains above the supervisory level of 11.75%.
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