Etyk says BoC-CDB agreement finalised with higher retirement payouts and staff protections

Nicosia, Cyprus. Banking union Etyk said this week that the agreement between Bank of Cyprus (BoC) and Cyprus Development Bank Group (CDB) had been finalised, following negotiations over retirement payments and the transfer of remaining employees.

Retirement terms and employment safeguards

In its October 15 statement, Etyk credited its intervention with lifting the maximum voluntary retirement payment to €350,000 from the €200,000 initially proposed. The union described the revised terms as more generous than any previous package offered to banking employees.

According to Etyk, BoC originally planned to take over CDB’s banking operations without employing its staff. Negotiations subsequently secured an agreement for BoC to take on employees who declined voluntary departure, while safeguarding their employment rights and uninterrupted service.

The union said talks had at one point become seriously deadlocked, putting the transaction at risk when over half of CDB’s employees had already departed through the early retirement programme. Etyk called a general meeting led by honorary president Loizos Hadjicostis while efforts to find terms acceptable to everyone continued.

Etyk said it would keep overseeing implementation to ensure the employment undertakings were honoured.

Portfolio transfer follows its own timetable

First disclosed on March 23, the transaction covers performing loans worth approximately €150 million, around €500 million in deposits, and certain additional assets and liabilities. It does not involve acquiring the whole of CDB; assets and liabilities not included will remain outside the transaction.

Despite Etyk’s announcement that the agreement was finalised, completion of the banking operations transfer is governed by a separate schedule. BoC and CDB bank have indicated that the portfolio is expected to move during October, provided regulatory clearances are obtained and outstanding conditions are met.

Services during the transition

Customer guidance released by CDB bank on October 5 said current accounts, payment cards, IBANs and online banking facilities would remain operational throughout the transition.

CDB bank said customers would be notified beforehand about changes to account details or any steps they needed to take as services migrate to BoC systems.