Nicosia - Bank of Cyprus interim directors meet today to discuss the draft restructuring plan prepared by Mckinsey as shareholders battle to reshape the board.
The meeting will focus on procedural issues concerning the general meeting of the bank’s new shareholders scheduled for September 10.
A final restructuring plan, according to Cyprus’s bailout agreement with its international lenders, will have to be submitted and approved by authorities by September 30.
It will then be passed on to the bank’s new board elected during the shareholders general meeting.
The names of the new candidate board members are expected to be chosen by September 4 and announced the day after.
Potential board members will have to meet the criteria of the Central Bank and the European Banks Authority. Their election is subject to approval by the Central Bank.
Meanwhile, financial news website Stockwatch reported difficulties in finding suitable candidates for the bank’s new board.
Central Bank Governor Panicos Demetriades will meet lawyers representing foreign shareholders and Laiki Bank depositors for the third time on August 27 in order to discuss the matter.
So far, Demetriades’ contacts and those of Central Bank board member Mike Spanos and senior director Yiangos Demetriou with lawyers representing 12%-13% of the bank’s share capital have not had the expected results.
Lawyers are believed to have proposed the possibility of appointing a well established Russian national working in the financial sector in London and expressed the wish to have more foreign nationals appointed on the bank’s board of directors. Up to 15% of BoC shareholders are either Russian or Ukrainian.
Laiki’s uninsured depositors have proposed individuals from their association such as their chairman Antonis Papaconstantinou. Creditors of “bad” Laiki own 18% of BoC.
Ruling Disy will make a new attempt to change the resolution law at an extraordinary House Plenum.
Ruling Disy will try to limit the discretionary powers of the central bank governor as the Resolution Authority.