The announcement is sent for informational purposes and concerns investors who maintain an account at the Cyprus Stock Exchange and have Capital Securities 2009 under the code CPBCB.

Cyprus Popular Bank Public Co Ltd (the “Bank”) announces the following:

It was decided by the Bank,  in accordance with the provisions of Clause 5.3.5 of the Prospectus dated July 3, 2009, based on which the Bank issued the Capital Securities, that the interest for the period ending June 30, 2013 shall not be paid.  Therefore, the Bank will not proceed with payment of the said interest for the said period. 

The Bank notes that the 2012 Decree for the Underwriting of the Rights Issue of the Cyprus Popular Bank Public Co Ltd as amended (which was issued in accordance with the Management of Financial Crisis Law 200(I) of 2011, as amended) includes conditions prohibiting payments of interest.

It is also noted that the Bank is under resolution in accordance with the Resolution of Credit and Other Institutions Law of 2013.  In accordance with the Resolution of Credit and Other Institutions Law of 2013, the implementation of resolution measures does not activate any contractual clause, which is activated in the event of liquidation or insolvency or occurrence of any other event which may be described as a credit event or equivalent of insolvency.

The Bank does not hereby make any representation on its future decisions and/or actions.