Bank of Cyprus says outgoing chief executive agrees to stay on 2 more years

NICOSIA, Cyprus – Cyprus’ largest bank says its outgoing chief executive has agreed to stay on two more years under a new contract, overturning his earlier decision to step down.

John Patrick Hourican, a former Royal Bank of Scotland executive, announced in April that he would be leaving after two years at the helm of Bank of Cyprus. He cited personal reasons.

Hourican’s new contract takes effect Jan. 1st.

Bank of Cyprus Chairman Josef Ackermann said Tuesday that Hourican has been “instrumental” in improving the troubled lender’s performance.

Hourican took on the job a few months after international creditors threw Cyprus a 10 billion euro ($10.63 billion) lifeline in March, 2013, that forced a grab of uninsured Bank of Cyprus deposits and shuttered the country’s second largest lender.