Cypriot legislators are likely to vote in favor of a bill that will allow bailed-in depositors to gain representation on the board of the Bank of Cyprus.
The proposal of the Democratic Party, which was discussed yesterday in the house finance committee, seems to have the support of all major parties.

According to the deputy chairman of the Finance Committee Angelo Votsis, the private bill relates to board representation of the depositors which helped the banks to emerge from the crisis.

One of the biggest shareholders of the Bank of Cyprus, is the legacy Laiki bank, which has 9.6% of its shares.

All other major shareholders have representation in the board, except Laiki.
Laiki depositors, who formed an association in 2013, have been demanding representation in BOCY’s board. But they do not have any official capacity with regards to the Laiki assets, which are managed by an administrator under the supervision of the Central Bank.

The final text of the private bill can give representation of up to 20% of the board’s seats to bailed-in depositors.

The BOCY uninsured depositors were also bailed in and some are still members of the BOCY board.

The provisions of the private bill will apply for five years from the date of application of the rescue measure.

In light of this development, the Bank announced yesterday that it might move its holding company to Britain, as part of its LSE listing.