The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64.1 - Monetary intermediation
200 - 1,500 jobs Number of planned job losses
Announcement Date
13 February 2016
Employment effect (start)
8 February 2016
Foreseen end date
26 February 2016
Description
The Bank of Cyprus Group, due to internal restructuring, is implementing a voluntary retirement scheme affecting 200 - 400 employees, Cypriot media report. The scheme is offered, in principle, to all employees, though it is mainly targeting employees over 50 years old. The scheme provides for a lump sum compensation on the basis of service duration, up to a maximum of €200,000. The scheme is offered to employees of all subsidiary companies of the Group (Bank of Cyprus, General Insurances, Eurolife Insurance and Cyprus Investment and Securities Corporation); interested employees can apply from 8th to 19th February 2016. On Monday 21st February, the Bank has extended the offer until Friday 26th February due to limited applications by employees. Further, media report that this is the last voluntary retirement scheme offered and the Group may resort to redundancies for up to 1500 employees till the end of 2016, more that 1/3 of the Group's current staff. The Group has not published any official statement, neither for the voluntary retirement scheme nor for the eventual redundancies to follow later this year.
The Group has implemented another two voluntary retirement schemes in January and August 2013, resulting in 229 and 1370 retirements respectively. Following the decisions of the Eurogroup meeting on 25th March 2013 and the decrees issued by the Central Bank of Cyprus, the Bank was under Resolution from 25 March 2013 to 30 July 2013, during this period, it was recapitalised and restructured. The recapitalisation was implemented via the bail-in of depositors, through the conversion of 47,5% of uninsured deposits into equity. In addition, the holders of ordinary shares and debt securities issued by the Group as of 29 March 2013 contributed to the recapitalisation through the absorption of losses.
Sources
13 February 2016: Dialogos
15 February 2016: Stockwatch
16 February 2016: Phileleftheros
19 February 2016: Stockwatch
Citation
Eurofound (2016), Bank of Cyprus, Internal restructuring in Cyprus, factsheet number 86531, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86531.
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