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Anastasiades-Samaras agree Cyrpiot bank branches in Greece to be absorbed

Cypriot president Nicos Anastasiades and Greek prime minister Antonis Samaras agreed that branches of Cypriot banks in Greece will be absorbed by Greek banks. The agreement was reached during a telephone conversation between the two leaders on Friday morning, Greek and Cypriot media reported.

The office of Anastasiades issued a statement on the agreement and thanked Samaras for his support.

Greek Finance Ministry issued a statement declaring the process will start immediately. “The total of deposits in these branches have been shielded,” the statement stressed.

ANT1 TV reported, there are at least three Greek banks biding to absorb the Greek branches of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank.

According to information of economic news newspaper Capital.gr, Piraeus and Alpha bank will give a ‘fierce battle’ to win the deal. Authorities prefer the branches of the three banks will go as package to one bidder. However if this is not possible, they maybe sold to different banks.

From Cyprus, there are reports that ‘deal’ will cost several millions euro.

The Greek Financial Stability Fund (HFSF) is to start a meeting on the issue at 2 p.m. Friday.

However the plan has to materialize as soon as possible as thousands of Greek civil servants and pensioners will have to have access to salaries and pensions to be paid out towards end of March.

Burning cheques

Meanwhile, cheques issued by Cypriot banks have turned into a nightmare for hundreds of  Greek entrepreneurs.  Greek banks cannot refund the cheques out of fear they may be not covered by sufficient funds as the Cypriot banks remain closed since last Saturday.

Also the Greek state does not accept cheques issued by Cypriot banks , whether in Cyprus or the branches in Greece. A relevant circular was distributed to tax offices in Greece. The ban is valid “until new circular.”


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