Greek banks are racing ahead with plans to strengthen their presence in Cyprus with Eurobank and Piraeus already having secured Central Bank permits to start local operations, while Aspis Bank may also be interested if its holding group decides to dispose of its stake in Universal Bank.
Other Greek banks may also decide to follow in order to take advantage of Cyprus’ low taxation and double taxation treaties, as well as the presence of a significant number of multinational corporations on the island.
Such plans are expected to accelerate if a Greek-led consortium of investors wins the bid for the government’s majority stake in the Cyprus Development Bank.
The government wants to sell its 88.01% stake and the European Investment Bank the remaining 11.99% stake. The deadline for expressions of interest expired on July 17.
Alpha Bank, National Bank of Greece and Emporiki Bank already have a direct presence in Cyprus. With the arrival of Eurobank, Piraeus and Aspis Bank, the number of Greek banks will double to six and exceed the number of local banks, one of which, Marfin Popular is already controlled by Greek investors.
Eurobank expansion
The Greek banking giant EGF Eurobank opened its first branch in Nicosia on Monday, heralding the launch of full-scale banking operations with the aim of providing top level service and innovative products to corporations and high-net worth individuals.
Michalis Louis, Eurobank Cyprus CEO, told the Financial Mirror following the opening of the office on the busy Makarios III Ave., that the bank will open its second office in Limassol in the first half of 2008 and then expand to all the major towns through business centres.
Louis said Eurobank will offer all banking serviceswithout opening a retail branch network, with emphasis placed on corporate and investment banking, private banking and asset management.
“We shall have retail products for our clients, with Eurobank also targeting M&As, corporate restructuring, bridge loans and all sorts of sophisticated deals that our clients may require,” he said, adding that Cyprus will enjoy the full range of products now on offer from Eurobank Greece.
Eurobank has already recruited 30 specialised staff and will be hiring more for its expansion drive in the other major towns.
Piraeus recruitment
Piraeus Bank has continued with its intensive staff recruitment drive with the objective to hire a minimum of 130 people to be in a position to open in all towns.
Greece’s fourth largest bank is keen to attract top quality personnel in order to man its operations in Cyprus after its decision to dispose of a 8.19% stake in Bank of Cyprus to Marfin Popular Bank earlier in the year at a substantial profit.
Aspis and others
Aspis Bank may decide to expand to Cyprus directly if the Group proceeds to dispose its stake in Universal Bank (USB), in which it does not have management or board control.
Source: Financial Mirror.
