April 2, 2013
Cyprus’ largest lender, Bank of Cyprus (BoC), said on Monday it has completed its recapitalization by converting depositors’ money into equity, under a Eurogroup deal on a bailout for Cyprus.
A bank statement said the recapitalization fully satisfies the minimum capital adequacy requirements and maintains a Core Tier 1 of 9 percent under the adverse scenario developed by audit firm PIMCO.
The company completed a due diligence of the Cypriot banks in January to establish their recapitalization needs following heavy losses on account of their extensive exposure to the Greek debt.
Under the bailout deal reached at a Eurogroup meeting on March 25, Bank of Cyprus made use of 37.5 percent of deposits exceeding 100,000 euros (129,000 U.S. dollars) for the initial recapitalization operation, with a further 22.5 percent to remain blocked until the full needs of the recapitalization are established.
Bank of Cyprus did not say what percentage of depositor’s money was used for its recapitalization to the Core Tier 1 ratio of 9 percent.