The Bank of Cyprus (BoC) – the Cyprus Development Bank Group (CDB) agreement has been finalised, banking union Etyk said this week, following negotiations that raised the ceiling for voluntary retirement payouts to €350,000 and secured the transfer of employees who chose to stay.

In a statement issued on October 15, Etyk said its intervention had increased the maximum payout from an initial €200,000, describing the revised package as the most generous offered to banking staff.

The union also said BoC had initially intended to acquire CDB’s banking business without taking on its employees. Following discussions, however, it agreed to absorb staff who had not opted for voluntary departure, with their employment rights and continuity of service preserved.

According to Etyk, negotiations had reached a serious impasse at one stage, threatening the transaction after more than half of CDB’s workforce had already left under the early retirement scheme. The union then convened a general meeting, chaired by its honorary president Loizos Hadjicostis, as efforts continued to reach an agreement acceptable to all parties.

The transaction, first announced on March 23, concerns the transfer of approximately €150 million in performing loans, deposits of around €500 million and selected other assets and liabilities. It is not a purchase of CDB in its entirety, with the remaining assets and liabilities staying outside the deal.

Although Etyk has described the agreement as finalised, the transfer of the banking business follows a separate timetable. BoC and CDB bank have said the portfolio transfer is expected during October, subject to regulatory approvals and the fulfilment of the remaining conditions.

Under customer guidance published by  CDB bank on October 5, existing accounts, cards, IBANs and digital banking services will continue to operate during the transitional period. Customers will receive advance notice of any new account details or actions required as services move to BoC systems.

Etyk said it would continue monitoring the arrangements to ensure the employment commitments are upheld.