New boss to clean up the Bank of Cyprus

City A.M. Reporter
TROUBLED Cypriot lender the Bank of Cyprus will be run by Greek banker Christos Sorotos from the end of this month, the central bank announced yesterday.

He has been appointed interim chief executive officer at the lender which is under temporary control by the central bank as part of a financial aid package to the island.

Sorotos, now based in the UK and with experience in corporate restructurings, takes up his duties on 29 May. He had previously worked as a deputy governor at National Bank of Greece.

The Bank of Cyprus was one of two on the island which ran out of money in March and is being restructured by the authorities.

Creditors and shareholders at the bank were wiped out, and uninsured depositors lost some of their savings above the €100,000 (£85,483) mark, recapitalising the bank as part of at €10bn bailout from the IMF and EU.

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