Oct 03, 2014

EBRD looking to increase involvement in Cyprus

(Reuters) - The European Bank for Reconstruction and Development is already eyeing fresh deals in Cyprus' banking sector and is planning to install at least one independent director on the board of its first investment in the country, Bank of Cyprus. 

Speaking at a Reuters summit, Lucyna Stanczak-Wuczynska, who took up the post of regional Director of Financial Institutions at the EBRD earlier this month, hinted the bank was closing in on a second deal just over a month after sealing its first.

"We're looking at the entire banking sector in Cyprus," Stanczak-Wuczynska said on Tuesday when asked where the ERBD could be involved next.

She said the range of options also included providing specialist loan facilities and credit lines in the country, although she appeared to rule out taking a stake in the strained Co-operative Central Bank (CCB).

"For co-operative banks there are always challenges with shareholder composition and possible equity participation you can build into them. But we plan to say involved in the financial sector."

Having taken what she described as a "big ticket" 100 million euro, near 5 percent stake in Bank of Cyprus in the inaugural deal in July, the EBRD now plans to get an independent director installed.

"We are looking forward to seeing the change in the bank," she said. "And we would like to propose an independent supervisory board member. At least for sure one person."

Article Source: http://www.reuters.com/article/2014/09/30/us-ebrd-cyprus-idUSKCN0HP1YH20140930