C Y P R U S P O P U L A R B A N K P U B L I C C O L T D A N N O U N C E M E N T

Cyprus Popular Bank Public Co. Ltd («the Bank») announces that Law Firm SKADDEN, ARPS, SLATE, MEAGHER & FLOM (UK) LLP, acting on behalf of the Bank, has prepared and on November 21 2012, served upon the Greek Government, a Notice of Dispute under the provisions of the Bilateral Treaty («the Treaty») of 30th March 1992 on mutual promotion and protection of investments, between the Republic of Cyprus and the Hellenic Republic.
Based on the provisions of the Bilateral Treaty, the Bank seeks equal treatment in relation to the other banking institutions operating in Greece and related remedies. It is anticipated that access to the mechanisms available for liquidity and capital support of Greek Banks, will contribute significantly to the considerable efforts made by the Bank to address the impact of its operations in Greece, so as to continue pursuing an important role in Greece´s economy.
The Treaty provides, that any dispute relating to the investment between a Contracting State and an Investor in its territory who resides in the other Contracting State, is resolved amicably by the parties. In the event that the dispute is not resolved, the Bank intends, in accordance with the provisions of the Treaty, to request the activation of an arbitration process at the International Centre for the Settlement of Investment Disputes (ICSID) having its seat in Washington, DC (USA).
The Bank wishes to cooperate with the Greek Authorities for the expeditious resolution of the dispute.
Nicosia, 22 November 2012

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