Restructuring Plan and Exit from Resolution
Actions to comply with MOU
1 Implementation of Recapitalisation
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47,5% of bailed-in eligible deposits converted to equity, based on independent valuation
exercise to ensure that the Bank meets the minimum capital adequacy ratios throughout the
MoU program
2 Restructuring of Cyprus operations
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Restructuring and Integration ongoing, absorb Laiki operations and improve efficiency
Branch rationalisation, with >60 branches (~31% of network) expected to close during 2013
- Personnel cost reduction, implementation of salary and benefit cuts and VRS
Risk management
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Strengthen risk management to reverse asset quality deterioration
Optimize recovery of non-performing loans
Funding and liquidity management
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Liquidity outflows decelerate, with defined actions to regain trust of clients/market
5 Restructuring Plan
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Restructuring measures, covering business, operations, risk, liquidity and capital
Strategy going forward focusing on viability and profitability of core domestic operations
Bank of Cyprus
KYMPI
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