The transformation of Cyprus’ banking sector also marked the transition of employees into a new “parallel” market focusing on the management of non-performing loans.
That’s why a new state of play has been created out of “borrowed” bank employees transferred from traditional banking to foreign companies specializing in the management of NPLs, Phileleftheros reports.
But all these new developments are under the watchful eye of the Cyprus Bank Employees Union (Etyk) which has managed – so far – to be in agreement with bank employers.
In other words, all “borrowed” employees are transferred temporarily and will go back to traditional duties once their NPLs task is concluded.
Data collected by Phileleftheros shows that 107 Bank of Cyprus employees have been transferred to Apollo fund after their recent purchase of a red loan portfolio with a gross book value of €2.8 billion.
Another such package – Hellix 2 – is now under draft with a gross value of up to € 2.8 billion. It is expected to be completed by the first half of 2020 and will also provide for a new transfer of employees. Although figures were not revealed, some 100 employees are expected to be transferred.
That keeps Etyk on alert and constantly send the message that the rights of these employees should be safeguarded.
Hellenic Bank reached an agreement with APS for the management of NPLs amounting to € 2.4 billion back in January 2017. Some 150 employees were transferred to the new company created between Hellenic Bank (49%) and APS Recovery Cyprus (51%).
The agreement reached with Etyk provided that employees had to stay there for at least two years while the maximum is five years. After the first two some 50 employees went back to Hellenic.
At the same time, a total of 326 employees of ex Cyprus Co-op bank which collapsed went to Altamira Asset Management Cyprus in August 2018.
And 108 of them have opted for the latest voluntary retirement plan on offer. Altamira manages a €7 bn portfolio of Co-op bank’s NPLs.