Panayiotis Rougalas
Bank of Cyprus’ acquisition of cdbBank is on course for a successful conclusion after cdbBank met a key condition of the agreement: implementing a voluntary retirement scheme (VRS).
Kathimerini understands that cdbBank successfully completed the scheme, which had been running since midsummer and was essential for the deal between the two banks to proceed.
Around 50 to 60 cdbBank employees will join Bank of Cyprus.
According to available information, around 50 to 60 cdbBank employees will join Bank of Cyprus, although the number who accepted cdbBank’s generous voluntary departure package remains unclear.
The bank had a total workforce of 133, and some employees will remain with the residual cdbBank entity, which will continue to manage its nonperforming loans. The expected transfer of 50 to 60 employees will bring Bank of Cyprus’ workforce to around 2,900, up from the 2,839 reported in its latest financial results.
Those who took up cdbBank’s offer may have benefited from what is said to be the most generous voluntary departure scheme ever offered by a Cypriot bank. Payments for long-serving employees reached close to €250,000, while additional departure bonuses made the offer difficult for many to turn down.
In any event, cdbBank met the targets it had set and agreed with Bank of Cyprus, clearing the way for the transaction to proceed.
Official announcements sealing the banks’ “marriage” are expected before the end of October 2026, with the necessary regulatory approvals from the Central Bank of Cyprus also expected within days.
The proposed transaction, announced in March 2026, includes the sale of approximately €150 million in performing loans, around €500 million in deposits, and certain other assets and liabilities.
Both banks have said the transfer is expected to take place essentially at par—at face value—while CDB Bank's remaining assets and liabilities will continue to be managed as before, without any changes.
Other suitors had shown interest
According to a cdbBank statement, several banking and investment groups expressed interest in the bank over the past three years as it assessed its strategic options.
The most recent publicly disclosed attempt to buy it came from AstroBank, which was itself subsequently sold to Alpha Bank Cyprus. Those talks took place in the fourth quarter of 2023, but the two sides never reached an agreement.
Beyond the abandoned AstroBank negotiations, cdbBank also attracted serious interest from a banking entity outside the European Union with roots in Armenia.
Other potential suitors were occasionally said to have emerged, including entities with a presence in Cyprus or elsewhere in Europe that did not hold a banking license.
Indeed, cdbBank’s strongest selling point was its status as a licensed bank operating within the EU.
A smooth transition for customers
According to the questions-and-answers document accompanying the deal, cdbBank customers will continue using their existing accounts, IBANs, cards and banking services until their accounts are moved to Bank of Cyprus’ systems.
Once the transfer takes place, Bank of Cyprus will service the products concerned and provide customers with any new details they need. These may include new account details or IBANs, new card details and digital banking instructions, where applicable.
Bank of Cyprus will notify customers in advance of any steps they need to take.
The two banks will work together to ensure a smooth transition, with Bank of Cyprus providing advance notice of any changes or actions required from customers.
During the transition, customers will continue to have access to cdbBank’s existing service channels, including its branch. After their accounts are transferred, they will be served through Bank of Cyprus’ branch network and other banking channels.
The transfer will not change the basic terms and conditions of customers’ existing loans. Any changes proposed in the future will be communicated by Bank of Cyprus in line with applicable legal and regulatory requirements.
There will also be no immediate change to the interest rate on customers’ deposit accounts as a result of the transfer.
