Foreign predators are moving in on Cyprus’s key banking asset, in the wake of the island’s membership of the EU. The Bank of Cyprus is not only unrivalled in local franchise, but it also has positions in the Russian market and in the Balkans. But now that Greek and Gulf money are targeting it, many Cypriots regard its days as numbered.
However, the path to takeover of such a prized possession is predictably tortuous and the identity of the final owner is still uncertain. The vexed deal has its origins in informal merger discussions that took place last year between the management of Marfin Popular Bank and the Bank of Cyprus. These had the potential to restructure the Cyprus banking market dramatically.
