Cyprus central bank chief sees efforts to oust him

Cyprus central bank chief says media reports are orchestrated effort to force his resignation

Associated Press

NICOSIA, Cyprus (AP) -- Cyprus' central bank chief has lashed out at media reports suggesting that he agreed to pay an audit firm a fee based on how much bank depositors' money was used to recapitalize lenders as part of the country's financial rescue.

Panicos Demetriades said in a statement Wednesday that the reports are "part of orchestrated efforts" to force his resignation or to "promote the interests" of audit firm Alvarez & Marsal that was hired to probe Cyprus' hobbled banks.

Demetriades says the central bank isn't obligated to pay such a "success fee." The reports raised questions whether the firm may have inflated the banks' recapitalization needs to increase its fee.

Cyprus' president has said that he would ask the Supreme Court to remove Demetriades for doing a bad job.

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