12 August 2014
Was this what was meant when the Central Bank of Cyprus announced that their job in taking over the Cyprus branch of FBME was to protect depositors? What about staff in FBME Card Services, 72 of whom have been made redundant due the suspension of business at the company? In turn, this is a direct result of the Central Bank’s Special Administrator in not allowing FBME Bank to make transactions.
Three more have been advised they will have to be let go in a short period if business cannot resume. This leaves 30 who will be retained for the present.
On 11 August FBME Card Services terminated the employment of its valued and trusted employees, some of whom had 20 years’ service with the company. It did so when confronted by the impossible situation foisted upon it due to the actions of the Central Bank. The suspension of business had occurred on 7 August.
All employees being made redundant have been spoken to by management and will receive their full entitlements from FBME in the August payroll plus, in due course, their compensation payment from the Government.
FBME sincerely regrets that this situation has been forced on it because of its inability to operate. It deplores the impact on these members of staff, their families and associates. Remaining employees will be retained to run the company in its suspension, hopefully with a view to rebuilding operations.
The company was formed in 2002 to compete in the Cyprus and European markets, offering local customers a competitive choice to the only other local provider, JCC Card Services. Prior to the suspension FBME Card Services delivered a comprehensive range of card related products, offering services to partners, merchants, banks and cardholders around the world.
Cyprus now reverts to a monopolistic, one-card market.