BoC apologises to shareholders

THE management of the Bank of Cyprus (BoC) yesterday apologised to the lender’s shareholders over the losses incurred by the Greek debt write-down.

Chairman Theodoros Aristodimou also announced cuts to the management’s pay.

“Unfortunately we did not predict that with its decisions, the Europe of solidarity would push a member-state to insolvency and failure to meet its contractual obligations,” Aristodimou told the lender’s AGM.

BoC suffered some €1.3 billion in losses from the write-down in Greek debt. Its share closed at 31 cents yesterday.

“We understand your bitterness and we are listening to your thoughts and concerns about the problems,” Aristodimou said.

Aristodimou said the board has decided to cut the non-executive members’ pay by 25 per cent while his fee will be halved.

Executives have also voluntarily cut their pay effective immediately.

CEO Andreas Eliades’ pay was cut by 20 per cent, while Yiannis Pehlivanides and Yiannis Kypri got a 15 per cent and 10 per cent reduction respectively.

Eliades defended the investments in Greece, adding that in all its years there, the bank had recorded profits except last year.

“It’s natural, when you are in a country enjoying the benefits to grow and invest,” he said.

Eliades said the lender’s priority is to recapitalise in order to meet EU requirements.

BoC needs around €200 million which it said will come from private funds.