Over a thousand employees choose Co-Op buyout

Over a thousand employees at Cyprus Cooperative Bank signed up for a voluntary severance package, well above the target of 900 set by the bank ahead of a takeover by Hellenic Bank.

According to Kathimerini Cyprus, 1040 employees met the deadline Tuesday at 3pm, indicating they would be willing to walk away according to the terms and conditions that were accepted by union representatives. Bank officials had set an initial target of 900 individuals.

The tax-free compensation amount, which is to be calculated as Years of Service x Annual Gross Salary x 26%, cannot exceed €180,000.

The compensation will be paid out in three installments, starting with no less than €20,000 by the end of September, with the other two payments scheduled for June and December of next year.

By 31 August 2018, according to the plan, any unused paid leave will also be deposited into the accounts of employees on the severance plan.

All remaining employees will move over to Hellenic Bank or stay behind in what has become Altamira Asset Management in Cyprus.

CCB and Altamira are set to form a joint venture for the management of non-performing loans and real-estate, leaving Hellenic Bank essentially absorbing co-op banking operations and assets except bad loans and toxic assets.

Finance Minister Harris Georgiades said the joint platform is a decisive step towards dealing with NPL’s, which has become an unmanageable burden for the banking institution at 60%, which is nearly €7 billion.