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 64.19 - Other monetary intermediation
800 - 900 jobs Number of planned job losses
Announcement Date
18 June 2018
Employment effect (start)
21 June 2018
Foreseen end date
21 August 2018
Description
The offer of the Hellenic Bank for the acquisition of the since 2013 state-owned Cyprus Cooperative Bank (CCB) was accepted by the Council of Ministers on 15 June 2018 in an extraordinary meeting. The CCB plans 900 redundancies to be carried out on volunteer basis within the framework of a compensation scheme, now under negotiation with the Bank's unions. The compensation scheme shall provide redundancy payments, according to length of service to employees, who volunteer for the redundancy; an upper ceiling shall apply. The unions entered into negotiations with the aim to strike an upper ceiling as high as possible, so as to facilitate that the scheme becomes attractive for a consistent number of CCB's employees, especially those who are not far from retirement age.
The deal foresees that the Hellenic Bank takes over 1,100 of the current 2,650 CCB's employees. 650 of the CCB's employees shall remain a) in an entity to be formed after the conclusion of the acquisition for the administration of remaining assets and b) in the joint venture that the CCB created last year with the Spanish AltaMira company for the management of non-performing loans, while the remaining 900 employees shall be included in the compensation scheme.
The Hellenic Bank will get the so called "good part" of the bank, that is the deposits and performing loans, while the "bad part" and some other remaining assets shall be transferred to an entity to be formed at the conclusion of the agreement.
Eurofound (2018), Cyprus Cooperative Bank, Merger/Acquisition in Cyprus, factsheet number 94377, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/94377.
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