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
400 - 3,000 jobs Number of planned job losses
Announcement Date
28 December 2012
Employment effect (start)
21 December 2012
Foreseen end date
31 January 2013
Description
Cyprus Popular Bank (Laiki), one of the largest Cypriot banks, announced a voluntary exit plan for over 400 employees in Greece.
The management confirmed that it has presented a voluntary exit plan to its 3000 employees in Greece at the end of December 2012. The bank is offering compensation packages up to 120,000 in the framework of the Restructuring Plan and reorganization of its operations. Employees less than 45 years old will be offered 40% of their monthly salary per year of service; employees aged 45 to 55 will receive 100% of their monthly salary per year of service; and those aged 55 and above will get 1.25 monthly salary per year of service.
Cyprus Popular Bank requested state support from the government following massive impairments of Greek sovereign debt and non-performing loans in its operations in Greece and Cyprus. The government nationalized the bank through the acquisition of shares worth of €1.8 billion (amounting to 10% of Cyprus GDP) issuing a decree instructing the bank to present a restructuring plan including a 10% cut in personnel expenditures for 2012 and an additional 8% in 2013.
The bank has also proposed a restructuring plan for its employees in Cyprus (see here). In addition, the number of employees in Greece has already been reduced by 133 in 2012. Furthermore, the number of branches was reduced from 174 to 132 and of administrative centres from 23 to 10.
Sources
28 December 2012: Imerisia
28 January 2013: Ta nea
Citation
Eurofound (2012), Cyprus Popular Bank, Internal restructuring in Greece, factsheet number 74742, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/74742.
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