Cyprus' biggest bank sells off Ukraine business
NICOSIA, Cyprus (AP) — Cyprus' largest bank says it has agreed to sell off its loss-making Ukrainian subsidiary PJSC Bank of Cyprus as part of its restructuring plan.
Bank of Cyprus says the 225 million-euro ($305 million) deal with ABH Ukraine Ltd, part of Russia's Alfa Group, will help boost the troubled lender's cash flow.
Bank of Cyprus Chairman Christis Hassapis said in a statement Friday that the agreement, which still awaits regulatory approval from Cypriot and Ukrainian authorities, reduces risks to the bank's balance sheet.
Bank of Cyprus was at the heart of a multibillion-euro financial rescue that Cyprus received from international creditors last year.
The deal forced the seizure of large portions of uninsured savings in Bank of Cyprus and Laiki bank, which was partially absorbed by the bigger lender.