articles | 03 June 2013

CBC appoints KPMG London to evaluate Bank of Cyprus balance sheet

The Central Bank of Cyprus announced it has appointed audit firm KPMG London to carry out an independent evaluation of the assets of the Bank of Cyprus and the Cyprus Popular Bank.

"The CBC acting as Resolution Authority has appointed KPMG London to carry out an independent evaluation of the assets and liabilities of Bank of Cyprus and Cyprus Popular Bank," CBC Spokeswoman Aliki Stylianou told CNA, adding the evaluation is expected to be completed by mid July.

"After the completion and delivery of the valuation report, the Resolution Authority will determine the rate of conversion into equity of 22.5% of the uninsured deposits of the Bank which are now frozen," Stylianou said. She added that the Authority intents to finalize the conversion rate within the next 15 days from the delivery of the evaluation report.

Under the €10 billion bailout agreement, uninsured deposits took losses to cover the capital needs of the island`s two largest banks. So far 37.5% of uninsured deposits in Bank of Cyprus have been converted into equity, whereas an additional 22.5% remains frozen pending the independent evaluation. Cyprus Popular, Cyprus` second largest bank will be wound down, with its uninsured deposits expected to take losses up to 80%.

Source: Financial Mirror

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