Within the framework of the 8-month agreement with ETYK on the staff’s investment loans, the cost for the Bank of Cyprus and the Popular Bank will reach £250 thousand and £150 thousand respectively, BOC and CPB officials told StockWatch on Tuesday. The total amount of the investment loans for the Bank of Cyprus staff stands at £20 million and concerns 880 employees. The amount for the Popular Bank stands at £11 - £12 million.

It is noted that the recent increase in interest rates by 1% will not affect the investment debts.

Union contract and investment loans “are associated”

According to the relevant agreement, this settlement will be effective until the end of 2004 and will be reexamined in December 2004 “in the light of the new data”.

BOC Staff Manager, Yiannis Hadjiyiannis associated the reexamination of the agreement with the expiry of the union contracts of the bank employees in late 2004 and the start of talks for their renewal, as well as the possibility that the Cyprus accession in the EU will affect positively the BOC results.

“Everything must be reckoned in within the framework of the talks on the renewal of the union contracts”, Mr. Hadjiyiannis noted.

On the other hand, CPB General Manager, Petros Petrou avoided to associate the reexamination of the agreement with the bank’s financial results and the performance of the bank’s share in the CSE.

“The one has nothing to do with the other. The Popular Bank is seeking ways to support its staff so as to overcome a number of problems concerning the settlement of their investment loans”, Mr. Petrou concluded.