Angry protesters, mainly bank employees, spontaneously are gathering outside the Cypriot Parliament after the news Laiki (Cyprus Popular Bank -CPB) will close down. “In less than 10 minutes after the news, people took to the streets,” state broadcaster RIK reported.
Police units rushed outside the Parliament, minor clashes took place and tear gas use.
The news was made public short after the Cypriot cabinet started to meet. Local media, reported that Laiki employees union were informed that the bank will close down.
RIK TV 06:05 pm: Laiki bank employees were orally informed about the closure. Some speak about “resolution” of the bank, that is splitting and restructuring of the bank.
A couple of minutes later, a press officer of Cyprus Central Bank dismissed Laiki closure news on RIK TV.
picture @AndreasKakaris via Twitter
Should Laiki close down, 2,500 people will immediately lose their jobs.
As for customers’ assets, 100,000 euro deposits are guaranteed by EU law.
No further details were made on whether the bank will be split into “good” and “bad”, with the good part to be offered to a new owner.
Anxious Cypriots run to withdraw money from PB ATMS on Thursday amid fears and rumors the bank would close. Also bank customers in Greke subsidiaries withdrew as much as they were allowed to.
Cyprus Popular Bank or Laiki formerly known as Marfin Popular Bank) is the second largest banking group in Cyprus behind the Bank of Cyprus. Trading on the island as Laiki Bank (Laiki being the Greek word for Popular), as of September 2012 it holds a 16% share of the market in loans and a 14.4% share of deposits. It is 84% state owned since 30 June 2012. Its shares are listed on the Cyprus Stock Exchange and the Athens Stock Exchange. CPB has a network of more than 478 branches in Cyprus, Greece (where its subsidiary Laïki Bank operates), Russia, Ukraine, Romania, Serbia, the UK and Malta.
In 2010 the company was selected to as the bank of the year in Cyprus by the Banker.
to be continued…