articles | 26 June 2014

Cyprus banks expected to pass stress tests, says CB Governor

Central Bank chief Chrystalla Georghadji expects the bailed-out island's leading banks to pass European tests gauging their health.

Georghadji urged the four banks that will be examined in the so-called stress tests this year to bolster their capital buffers so that they're "fully prepared."

Among the lenders to be tested is largest lender, Bank of Cyprus, which was at the centre of international creditors' multibillion-euro rescue last year. 

Bank of Cyprus said it would look at ways of raising more capital at its board meeting today.

Georghadji said that if banks can boost their cash reserves, it would be easier for authorities to eliminate the remaining controls on money flows, which authorities hope to get rid of by the end of this year.

She said the country's recession this year will be slightly shallower than creditors have predicted, with the economy forecast to shrink around 4% instead of 4.2%.

Source: InCyprus

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