Piraeus Bank, Greece’s second-largest bank by assets, has signed an agreement to acquire all of the Greek deposits, loans and branches of Bank of Cyprus, Cyprus Popular Bank (CPB) and Hellenic Bank, including their Greek subsidiaries, for a total cash consideration of €524m ($669m).

Following the completion of the transaction, Piraeus Bank Group will have consolidated total assets of €95bn, 1,660 branches and 24,000 employees.

Piraeus Bank said that the deal represented another important step towards the restructuring of the Greek banking system.

The agreement follows the proposal submitted in response to the invitation addressed to Greek banks by the Greek government, the Bank of Greece and the Hellenic Financial Stability Fund (HFSF), with regard to the acquisition of the branch network and operations of the three Cypriot banks in Greece.

Customer deposits with the Greek branches of Bank of Cyprus, CPB and Hellenic Bank are not subject to any bank levy or haircut that has been agreed in Cyprus.

A spokesperson for Piraeus Bank said: "The transaction ensures the stability of the Greek banking system, provides assistance to Cyprus in relation to the resolution of the crisis and secures depositors, customers and employees of the three Cypriot banks in Greece post recent uncertainty."

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