The announcement is sent for informational purposes and concerns investors who maintain an account at the Cyprus Stock Exchange and have Capital Securities 2010 under the code CPBCC.

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

Under the provisions of Term 5.3.5 of the Prospectus dated May 28, 2010 relating to Capital Securities issued by the Bank in 2010 (CPBCC), the payment of interest for the period December 31, 2012 to March 30, 2013 has been cancelled and therefore no interest will be paid for the said period.  According to the terms of the Issue, the interest payment cancellation is final and no longer payable by the Bank.

The Bank operates under conditions which are dictated by European Union legislation relating to state aid and therefore subject to relevant prohibitions regarding interest payment in relation to capital instruments.  Additionally, it is noted that the 2012 Decree for the Underwriting of the Rights Issue of the Cyprus Popular Bank Public Co Ltd (which was issued in accordance with the Management of Financial Crisis Law) includes conditions prohibiting payment of any interest in relation to capital instruments not compatible with the requirements of Central Bank of Cyprus.