The chairman of Cyprus' second-biggest bank Laiki Bank has resigned.

Michalis Sarris said that he stepped down after Central Bank Governor Panicos Demetriades had asked him to.

He said he was also told that it was the government's wish for him to resign too.

Mr Sarris did not elaborate on the reasons why he was asked to leave.

In June, the government became Laiki's main shareholder after buying nearly €1.8 billion in shares to help it meet EU-set capital buffer requirements.

The bank, which posted record losses last year because of its Greek exposure, could not raise the money privately.

Cyprus in June became the fifth country to seek a bailout from its euro zone partners and the International Monetary Fund.