Head Of Bank Of Cyprus Quits After Appointment Of Special Administrator | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

Head Of Bank Of Cyprus Quits After Appointment Of Special Administrator

The chairman of the Bank of Cyprus abruptly stepped down after a special administrator was appointed to oversee its restructuring in the wake of a painful bailout of the island nation by international lenders.

Andreas Artemis' resignation, The New York Times reports, was "not wholly unexpected," but "still caught the market by surprise and was a further reminder of how volatile and uncertain Cyprus' financial system has become in recent days."

John Psaropoulos, reporting for NPR from the capital, Nicosia, says Artemis' resignation comes as the Bank of Cyprus prepares to absorb the country's second-biggest lender, Laiki Bank. In the process, depositors with more than $130,000 in their accounts will be levied a one-time charge of as much as 40 percent of their savings.

"But while both banks are crunching the numbers, nobody knows what their assets will be at the end of the day," Psaropoulos says. "Today's resignation [of Artemis] could throw a wrench in the entire process."

He says employees, unsure about their jobs, protested outside the Bank of Cyprus headquarters in Nicosia.

On Monday night, Cyrpus' central bank appointed Dinos Christofides to act as a special administrator for the Bank of Cyprus. He tells Reuters he will oversee "the restructuring of the bank and the absorption of part of Cyprus Popular Bank," known as Laiki Bank.

"It means that from now until further notice I will be running the bank," he said. "It could be short term ... or it could be longer."

Meanwhile, Greece's Piraeus Bank agreed Tuesday to buy the Greek operations of three Cypriot banks for $678 million, according to The Associated Press:

"Piraeus, which was selected last Friday to take over the Greek units of the Bank of Cyprus, Laiki and Hellenic ... says the Cypriot bank branches in Greece would reopen Wednesday, a day earlier than in Cyprus."

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

Weekend Musher Finds Dogs Keep Her Hanging On

Julia Bayly of Fort Kent, Maine, works as a reporter at the Bangor Daily News. Her passion outside of work is dog sledding. It's the latest installment in our hobby series "Alter Egos."
NPR

A Peace Corps Stint In Madagascar Gave Him A Vision Of Vanilla

The top source of vanilla beans sends its fragrant crop abroad for processing into extract. Now a former Peace Corps volunteer aims to boost Madagascar's economy by building a bean-to-bottle business.
NPR

The Most Bizarre Bits To Come Out Of The Trial Of Virginia's Ex-Governor

At issue are serious allegations of corruption, but the trial has also unveiled some scandalous details of former Virginia Gov. Bob McDonnell's personal life.
NPR

New Amazon Series Pilots Fall Short Of A TV Revolution

NPR TV critic Eric Deggans ranks Amazon's new batch of five series pilots, asking why none of them seem break the rules of TV quite enough to draw attention.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.