For Laiki current account and savings account customers
Laiki Bank UK customers with current accounts or savings accounts in credit do not need to take any action. From 2 April 2013, cash depositors with Laiki Bank UK have had their accounts transferred to the Bank of Cyprus UK and are now customers of that bank. They can access their accounts as normal through the Bank of Cyprus UK. Laiki Bank UK branches will remain open but will be operating as branches of the Bank of Cyprus UK for all customers.
For Laiki mortgage and loan customers
Laiki Bank UK customers who use other Laiki Bank services (including mortgages, credit cards and loans) have had their services transferred to the Bank of Cyprus, Cyprus. These services will continue to be administered by the Laiki Bank UK branches on behalf of the Bank of Cyprus, Cyprus. Customers will be contacted by the bank shortly. However, they should continue to make repayments as normal.
For Laiki customers with an overdraft
Under arrangements put in place by the Cypriot authorities, accounts in overdraft at Laiki Bank UK as at opening of business on 2 April will not be transferred to the Bank of Cyprus UK. Instead, these accounts were transferred to the Bank of Cyprus, Cyprus. Customers with accounts in overdraft should speak with Laiki Bank UK to understand what this means for the operation of their accounts.
Customers who had an overdraft facility but were in credit have had this facility cancelled. They will need to contact Bank of Cyprus UK if they want to apply for a new overdraft facility.
Existing Bank of Cyprus customers
For existing Bank of Cyprus UK customers, the situation has not changed and the bank will continue to operate as normal.
If you have any further questions, contact the Bank of Cyprus UK or your local branch. The Bank of Cyprus UK will shortly contact customers.
What has happened?
On 25 March 2013, Cyprus Popular Bank (CPB), which operated in the UK as Laiki Bank UK, closed and a special administrator was appointed under Cypriot law to help restructure its business.
On 2 April 2013, the Central Bank of Cyprus agreed to some of Laiki Bank UK’s business transferring to the Bank of Cyprus UK.
The Bank of Cyprus UK operates in the UK as a subsidiary of the Bank of Cyprus and is, therefore regulated by us and the Prudential Regulation Authority in a similar way to other UK banks. Its eligible customers – including existing Bank of Cyprus UK customers and those who were Laiki Bank UK customers – are covered by the UK’s Financial Services Compensation Scheme (FSCS)[1] up to £85,000 per depositor.
Customers who had accounts with both Bank of Cyprus UK and Laiki Bank UK should consider whether the balances of their accounts exceed the FSCS limit.
We continue to monitor the restructuring and are working with the relevant parties. We will provide further updates as and when available.
See more on European banks operating in the UK.