Today we are taking a step forward for the Bank of Cyprus, which leaves the resolution regime, having strong capital adequacy,» the Governor of the Central Bank Panicos Demetriades said.
Demetriades made the above brief statement on Tuesday during the signing ceremony of the letter with which the Bank of Cyprus exits the resolution regime which was later handed over to the Chairman of the interim Board of Directors of the Bank, Sophocles Michaelides, who was also present at the ceremony.
“The exit of the Bank of Cyprus from the resolution regime is a landmark for the restructuring of the banking sector and puts us in the right direction towards economic stability,” Dimitriades concluded.
As part of a €10 billion rescue package for Cyprus, Bank of Cyprus, the island`s largest lender, entered a resolution process, with an initial 60% of deposits over €100,000 blocked for capital to equity conversion to recapitalize the bank.
However, the final figure was reduced at 47.5% following the completion of an independent evaluation of the Bank`s balance sheet, after it absorbed the “good part” of Laiki Bank which will be wound down.