Economic analysts say that all attempts by Cypriot banks to reduce their exposure to the Greek economy, including their total withdrawal from Greece — is a step in the right direction.
Speaking to the CyBC on Tuesday, the former director of the Cyprus Securities Exchange Commission explained that if the island’s banks go ahead with such a move, then the island’s bank portfolios will not lose their value in the event that Greece is forced to exit the Euro zone and revert to the Drachma.
Press reports earlier in the week claimed that Bank of Cyprus and Greece’s Alpha Bank are considering exchanging loan portfolios – so that Alpha takes over Bank of Cyprus’s loans in Greece and vice versa and that Marfin Investment Group is considering taking over Cyprus Popular Bank’s Greek operations.
In a statement on the Cyprus Stock Exchange on Monday, Bank of Cyprus said it was looking at an assets exchange but did not identify a specific Greek lender.
