NICOSIA - The vast majority of Bank of Cyprus (BoC) new shareholders following the harsh depositors bail-in are Russians and Ukrainians with only 30% being Cypriots.
With the largest bank’s historic annual general meeting scheduled for September 10, intense negotiations are under way on the representation of share holders on the board of directors.
It is possible that within the minority of Cypriot shareholders there maybe foreign owners included whose shares are in the hands of a power of attorney.
An analysis of the bank’s shares shows that the number of shareholders comes to 110,000 of whom 9,000 are legal entities and the rest individuals.
Around 21,000 are those who emerged from the bail-in.
Some 93,000 is the number of old shareholders who together with bond holders (who are about 10,000) are estimated to own 0.7%.
The bank’s foreign shareholders are mainly Russians and Ukrainians while Polish nationals are next as well as Chinese and Indian nationals.
Central Bank governor Panicos Demetriades this week will have another meeting with lawyers representing foreign shareholders of around 12%-15% of the bank’s share capital.
No person owns shares over 1% except from while shareholders in “bad” Laiki hold 18% in the Bank of Cyprus.
Disy has, in the meantime, requested a discussion by parliament on August 29 in an aim to change the resolution law so that the Central Bank’s has less influence in deciding who sits on the BoC board.
Negotiations on the people who will comprise BoC’s new board of directors continue and law firms representing shareholders will meet for the third time at Central Bank tomorrow.
Meetings, so far, have not resulted in any conclusions in order to make a final list of names of candidates.
During last week’s consultations, lawyers are believed to have proposed the appointment of a well established Russian financier working in London.
They have also expressed the wish for the appointment of other foreigners including other influential Russians.
The lawyers and former Laiki Bank depositors will have to come up with detailed biographical notes of the people they propose so that the procedure for checking whether their qualifications are in line with Central Bank criteria can begin.
The procedure has to be finalised before the announcement of candidates for the bank’s board of directors on September 5.