Regarding today’s press reports in various media on the agreement between the Central Bank of Cyprus (CBC) and Alvarez & Marsal, the position of the Governor of the CBC is as follows:
1. These press reports are part of orchestrated efforts being made by certain groups to compel the Governor of the CBC to resign or to promote the interests of Alvarez & Marsal.
2. Many of the reports refer to confidential CBC documents which have been leaked in violation of the Central Bank of Cyprus Law and the CBC’s internal regulations. This is a serious criminal offense for which the Attorney General will soon be called upon to intervene.
3. The CBC has taken advice from its external legal counsel on the substance of the agreement with Alvarez & Marsal and, as reported in the press, the latter’s demands from the CBC. The legal counsel has advised that the CBC has no obligation to pay any success fee.
4. Consequently, the publicity given to this issue is not only detrimental to the best interests of the CBC and the banking system, but could also cause serious damage to the Cyprus economy in general.