Restructuring plan: Bank of Cyprus sells UK loan portfolio

Sells its for €361 million as part of its restructuring

NICOSIA: The Bank of Cyprus (BoC) has it has sold its UK loan portfolio for €361 million ($451 million) as part of its restructuring. The loan portfolio – largely composed of residential and commercial real estate-backed facilities – was sold to Mars Capital Finance and Camael Mortgages, said BoC. The sale of the loan portfolio is in line with the group’s restructuring plan and strategy of deleveraging through the disposal of non-core operations and strengthening its capital and liquidity position. The portfolio is not linked to the group’s wholly-owned subsidiary, BoC UK, but part of a wider UK portfolio transferred after BoC absorbed Laiki Bank under a 2013 bailout/bail-in. Depositors in BoC were hit with a 47.5% bail-in as part of the bailout package.

Published in The Express Tribune, November 4^th, 2014.

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