According to the report by “Ta Nea” Alpha Bank and Piraeos Trapeza are interested in buying out the branches of Cypriot banks operating in Greece. This was confirmed by the Minister of Finances, who stated that “Greece can contribute to absorbing the Greek branches of Cypriot banks without increasing the national debt”.
Cypriot banks will remain shut until at least Friday, while their ATM’s will operate as normal. Alpha Bank and Piraeos have each submitted offers for the 350-odd branches of the three major Cypriot banks (Trapeza Kyprou, Cyprus Popular Bank and Elliniki Trapeza).
According to banking circles, Alpha and Piraeos are top contenders, as Ethniki Trapeza has submitted an offer only for the branches of Trapeza Kyprou. The Postbank also appears unable to compete.
The buyout would be possible if the Cypriot Parliament votes in a bill allowing for the splitting up of the Cypriot banks in “strong” and “weak” banks. Following the split, the “strong” banks will be recapitalized, while the “weak” ones are sold off to foreign investors.
