Marfin Popular Bank to Merge With Greek Bank

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Cyprus Marfin Popular Bank has announced a merger with Marfin Egnatia Bank in Greece leaving Cyprus Government circles reeling over the news.
 
The Cyprus Government strategy to encourage foreign investment in Cyprus has been given a blow as the news will mean that the banking group will be domiciled in Greece.
 
The merger is scheduled to be finalised on 30th June 2009 and is aimed at 'improving the Group's strategic flexibility in terms of potential expansion in the Greek market and south-east Europe strengthening the Group's capitalisation by 10 per cent, and implementing a share buy-back for reasons of strategic expansion as allowed by regulations governing financial institutions in Greece.'
 
It was also stated that the proposed merger 'will also contribute in the medium term to significantly strengthening the Group's profitability, resulting from the increased capitalisation and the corresponding potential for expanding its investment portfolio.'

It remains to be seen if any job losses will result from the merger.