The Greek Prime Minister Antonis Samaras and Cypriot President Nikos Anastasiadis have finally come to an agreement regarding the Greek stores of Cypriot banks. According to sources from the Ministry of Finances, Alpha and Piraeos Bank seem the likeliest to “absorb” the Cypriot banks.
The Cypriot President’s office issued a statement explaining that the Cypriot banks will sacrifice their Greek stores “on favorable terms and with remarkable benefits for the Cypriot side, under the current conditions”. The Financial Stability Fund will examine the offers for Trapeza Kyprou and Laiki Trapeza at 15:00. Alpha and Piraeos Banks appear to be the strongest contenders, while the Postbank is the outsider.
The stores of the Cypriot banks are expected to open for business on Tuesday, under a new name. Banking sources also indicate that Messrs. Stournaras and Provopoulos were instrumental in brokering the deal. Τhe Greek Ministry of Finances announced that the acquisition procedure will commence with the close cooperation of the Central Bank of Cyprus.
The Minister of Finances explained that with move “Greece will safeguard the savings of citizens in Cypriot banks entirely”. Mr. Stournaras added that everyone is “working day and night to absolutely ensure the stability of the banking system, as well as funding a viable solution for the economy and people of Cyprus”.
Opposition reacts
SYRIZA MPs Stratoulis, Tsoukalas and Kafantari have demanded that the government preserves the 5,500 jobs of the Cypriot bank stores in Greece. The three MPs accuse the Minister of Finances of vague promises regarding the banking system in Greece, absorbing the three banks and the 5,500 employees of the banks.
