Tuesday, July 30, 2013

Central Bank agrees 47.5% Bank of Cyprus haircut with creditors

NICOSIA: Cyprus's central bank agreed a 47.5 percent haircut with international creditors on Monday on deposits exceeding 100,000 euros in the Bank of Cyprus in an attempt to recapitalise it.


"The Central Bank has reached a definite percentage of the bail-in at 47.5 percent," deputy government spokesman Victoras Papadopoulos said in a statement.

A 30-strong delegation from the European Commission, European Central Bank and the International Monetary Fund is on the island to assess whether the recession-hit country is meeting its troika-set targets as agreed in a memorandum of understanding with international lenders in March.

In return for a 10 billion-euro bailout ($13 billion), the international creditors demanded the winding up of the island's second largest banker Laiki and a haircut on deposits over 100,000 euros in the Bank of Cyprus, its largest lender.

"During the meeting today (Monday) in Nicosia, participants noted there was a hopeful stabilisation of the situation which will give an impetus to the economy to get back on track to exit the crisis," Papadopoulos said.

indiatimes.com

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