Bank of Cyprus has hired former deputy chief executive Euan Hamilton from the Royal Bank of Scotland to lead its restructuring efforts following this year's international bailout of Cyprus. Hamilton, who will join Bank of Cyprus as a consultant, will begin reviewing in detail the delinquency, restructuring and recoveries of loans. From there, he would be able to see the picture clearly and be able to engineer a gameplan.
John Hourican, the new chief executive of Bank of Cyrpus who was appointed only last month, has been tackling key issues such as bad loans. Its efforts for a quick turnaround has been further delayed due to political infighting and at the same time, heavy criticism over its lack of transparency.
On Tuesday, Bank of Cyprus is due to report its results for the six months to the end of June. It currently holds the record of being the first bank in the Euro Zone to force depositors to lose some of their hard-earned savings to recapitalize the lender after being crippled by its exposure to Greece.
According to Reuters, Bank of Cyprus also assumed some assets of Laika, a bank that was wound down under terms of a EUR 10 billion bailout deal for Cyprus with the International Monetary Fund and the European Union. His last role at RBS, Hamilton was responsible for overseeing the sale or rundown of more than GBP 75 billion (USD121 billion) of non-core assets over 18 months.
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