Bank of Cyprus sells off subsidiary in Ukraine

Bank of Cyprus said on Friday that it had sold its subsidiary in Ukraine in line with a recommendation by Cyprus's international lenders. The bank's president, Crhistis Hasapis, said the subsidiary was sold for 225 million euros (304 million U.S. dollars) but he did not name the purchaser. He added that the selling of the Ukrainian subsidiary will both lead to a risk reduction given the turmoil in Ukraine and strengthen the bank's liquidity. Bank of Cyprus was forced to alienate its Greek business, which accounted for about half of its turnover, as part of a 10-billion-euro bailout for Cyprus by the Eurogroup and the International Monetary Fund 10 months ago. It was also instructed to sell off its subsidiary in Ukraine as part of moves to reduce its size. Hasapis said the selling of the bank's interests in Ukraine is part of the moves to restore its normal operation in line with the overall economic situation. Bank of Cyprus announced on Thursday the release of 950 million euros in time deposits frozen under a recapitalization arrangement last year.