Nicosia - Bank of Cyprus gave Russian Uniastrum €700 million to cover its capital needs due to the outflow of deposits and it would be in its best interest to sell the bank to an organisation which agrees to return the amount at a later stage, former BoC vice-president Evdokimos Xenofontos said yesterday.
Speaking before the investigating committee on the economy, Xenofontos revealed that BoC paid three times the value of Uniastrum’s assets, which was purchased for just under €500m.
“We would be lucky if we now get €100m or €80m for it,” he stressed.
The former BoC VP said that a summary of the due diligence report by Ernst & Young, which was prepared during a board meeting on October 30, 2008, did not reflect the essence of the report.
He said the report contained evidence indicating that BoC should cancel, postpone or re-negotiate the acquisition.
Xenofontos told the committee that the BoC board of directors was not aware of the re-purchase of the Greek bonds, noting that “we found out about it two years later.”