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articles | 17 May 2013

CBC announces Bank of Cyprus preliminary consolidated balance sheet

Cyprus Central Bank (CBC) announced on Thursday the preliminary consolidated balance sheet of Bank of Cyprus which under a €10 billion bailout agreement with the ESM/IMF has absorbed the good part of Cyprus Popular Bank which will be wound down.

According to the budged announced by the CBC, Bank of Cyprus has assets amounting to €38.7 billion and liabilities worth of €34.7 billion, after absorbing assets worth of €14.5 billion and liabilities of €13.7 billion from the Cyprus Popular Bank.

"The preliminary consolidated balance sheet presents capital adequacy ratio of 13% core tier 1 capital, including the deposits under court procedures and 12% excluding those deposits," the CBC add.

The CBC announced the key-milestones of Bank of Cyprus course towards normalization of its operations and its financial position.

These are the conversion of 37.5% of uninsured deposits into equity, under the terms of the bailout agreed with the Troika of the European Commission, the European Central Bank the International Monetary Fund, the appointment of 15-member interim board of Directors on 26 April and the finalization of the consolidated preliminary balance sheet.

"As a result of the above actions, Bank of Cyprus maintains high capitalization and a fully qualified Board with sufficient internal governance procedures,"

However according to the CBC the final conversion percentage to be required depends on the result of the independent evaluation of the bank’s assets and liabilities. According to the terms of the agreement with the Troika, the evaluation should be completed by the end of June. Following the bailout agreement, Bank of Cyprus entered a consolidation procedure, with its previous Board of Directors and senior management resigning at the instructions of the CBC in its capacity as Bank Resolution Authority.

Source: Financial Mirror

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