Greek banker Christos Sorotos, currently based in the UK and with experience in corporate restructurings, took up his duties this week, the Central Bank of Cyprus said. He has previously worked as a deputy governor at National Bank of Greece, country corporate officer for Citibank in Greece and general manager at Eurobank Greece.

The first priority of the new CEO will be to strengthen the administrative mechanism and the hierarchy in the Bank of Cyprus (BoC) and to cut costs. “From today, we are starting to implement what is implemented in other parts of the world in similar cases, without delay, analyses, and too much talk,” Sorotos told reporters after meeting the Central Bank governor.

Sorotos was appointed interim CEO on Tuesday and says he does not believe in the excuse that a bank has a particular status. “All banks in all parts of the world have one way of operation. They care about their shareholders and have an excellent relation with the regulator,” he said. Sorotos said his first priority would be to strengthen the bank’s administrative mechanism and hierarchy but also to reduce all administrative costs “today not tomorrow.”

Bank of Cyprus was placed in administration in March, as losses were imposed on uninsured bank deposits exceeding €100,000 to recapitalise the lender, heavily exposed to a Greek government debt write-down. Depositors were forced to take losses to recapitalise the bank as a condition for Cyprus to receive €10 billion in aid from the International Monetary Fund and the EU.

Some 37.5% of deposits not covered by the deposit guarantee scheme have already been converted into equity. An additional 22.5% is being held as a buffer for potential conversion depending on the outcome of an independent asset valuation due by July.

Normal operation of the CBC board has also been restored after the government appointed three new members – economists Alexander Michaelides, Michael Spanos and Stelios Kiliaris.
The CBC can now go ahead with the selection of the firm that will carry out the asset valuation.

Source: Cyprus Mail