Cyprus Central Bank Governor Panicos Demetriades said on Tuesday that ten of the new members of the Bank of Cyprus (BoC) Board of Directors have been approved while another six members have been asked to provide more information.

In an interview with CNA, which will be published on Friday, Demetriades said that the process is expected to be complete within the next few days.

At the same time, he asked for public debate on the matter to come to an end.
It would be best for the banking system that any public discussion on the matter comes to an end, he said.

According to Demetriades, the evaluation process was completed on Monday and on the basis of legal counsel a letter was sent to BoC containing the approval of ten members of the Board, adding that there wasn’t enough information on the other members.

He rejected criticism on a delay, noting that the process was completed in less than a week after the AGM of the bank, as well as that officials worked through the weekend.
The Central Bank, he pointed out, has a duty to examine very carefully all the pertinent facts. When these facts are not provided in a timely manner that is when matters will be delayed.

Demetriades further said that evaluating members of a bank’s Board of Directors constitutes a continuous part of the supervisory process.

The evaluation of the new members of the BoC Board was a special case since they were all elected at the same time.

Replying to a question as to what will happen in case certain members of a Board do not receive the Central Bank’s seal of approval; Demetriades said that the nomination committee of the Board has the right to find other persons to fulfill for the post.

The CBC has been subject to criticism of delaying with the examination of the Bank of Cyprus’ board members, elected in September 10.

The Bank of Cyprus, the island’s largest lender, entered a resolution process, following a €10 billion bailout agreed between the Troika (EC, ECB, IMF) and Cyprus last March.  It was taken out of resolution on July 30.

The bailout featured the conversion of 47.5% of uninsured deposits in Bank of Cyprus in order to cover its capital shortfall.

The new BOC board will elect a new CEO and will implement a restructuring plan as stipulated in the memorandum of understanding agreed with the Troika.

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