Friday November 28, 2014 Search
Weather | Athens
16o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bank of Cyprus said to mull boosting capital before stress test

Bank of Cyprus Pcl, the Mediterranean nation’s biggest lender, is weighing a capital increase of as much as 1 billion euros ($1.36 billion), said three people familiar with the matter.

The bank may raise between 800 million euros and 1 billion euros by selling shares, said the people, who asked not to be identified because the discussions are private. The board of directors tomorrow will discuss “funding and capital options that could expedite the implementation of the group’s restructuring plan and, in tandem, could further strengthen the group,” the Nicosia-based lender said in a filing yesterday.

The Cypriot economy veered to the brink of collapse in 2013 as the balance sheets of its banks ballooned to several times the size of the national economy and then suffered a nearly fatal blow from a writedown on holdings of Greek bonds.

Under an emergency funding deal in March 2013 backed by euro-area and International Monetary Fund loans, Bank of Cyprus absorbed its nearest rival, Cyprus Popular Bank Pcl, and seized nearly half of all uninsured deposits from its customers.

With euro-area stress tests this year, the island’s central bank has urged Bank of Cyprus to boost capital before bigger lenders in Europe absorb funds from investors, two of the people said. The central bank has pushed the company to build sufficient buffers to ensure a strong result in the test after last year’s losses on deposits and the imposition of capital controls shook confidence in the country’s financial system, they said.

Last week, Cyprus became the euro area’s final bailed-out nation to return to international markets amid a surge in demand for the region’s higher-yielding debt. It raised 750 million euros in a sale of five-year notes.

Finance Minister Haris Georgiades said on June 18 that Cypriot banks will benefit from the sovereign’s return from bond market exile, and find it easier to attract capital. [Bloomberg]

ekathimerini.com , Wednesday June 25, 2014 (12:15)  
Greek bank deposits drop in Oct, pause seven-month rise
Greek retail sales rise for fourth month in a row in September
Greek economy expands 0.7 pct q/q in Q3
Athens water supply 9-month profit falls 45 pct on lower charges
Venizelos urges Turkey to respect Cyprus EEZ
Ankara must respect Cyprus's exclusive economic zone (EEZ) if it wants UN-brokered reunification talks to resume, Greek Foreign Minister Evangelos Venizelos said ahead of a weekend visit to ...
Minister opposes plans to establish Islamic Studies department at Thessaloniki university
Minister of Macedonia and Thrace Giorgos Orfanos has criticized plans to establish a department of Islamic Studies at the Theological School of the Aristotle University of Thessaloniki. In c...
Inside News
SOCCER
PAOK is one win from Europa League´s last 32
A late brace by Stefanos Athanasiadis gifted PAOK a precious win at Dynamo Minsk on Thursday, meaning that the Thessaloniki team is one win away from graduating from the group stage of the E...
BASKETBALL
First defeat for Olympiakos in Euroleague
Olympiakos suffered its first Euroleague loss of the season going down 89-70 at Laboral Kutxa on Thursday, although the Greek team remains the favorite to clinch the top spot in its pool. Th...
Inside Sports
COMMENTARY
Change of US president won´t mean change of foreign policy
Americans have again voted for change in Washington as opposition Republicans take control of both houses of the US Congress. As attention now turns to the 2016 presidential race, it's time ...
COMMENTARY
The presidential election paradox
A few days ago, speaking with a visiting colleague who neither works in Europe nor covers events here, I suddenly felt how much we Greeks take for granted some things that should have worrie...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Venizelos urges Turkey to respect Cyprus EEZ
2. Greek bank deposits drop in Oct, pause seven-month rise
3. Greek retail sales rise for fourth month in a row in September
4. Greek economy expands 0.7 pct q/q in Q3
5. Minister opposes plans to establish Islamic Studies department at Thessaloniki university
6. Samaras meets Venizelos ahead of Turkey visit
more news
Today
This Week
1. Lebanese FM: Cyprus may be jihadi transit point
2. Child molester suspect photo released by police
3. Athens water supply 9-month profit falls 45 pct on lower charges
4. Armed man arrested on Thessaloniki campus
5. Change of US president won't mean change of foreign policy
6. Samaras meets Venizelos ahead of Turkey visit
Today
This Week
1. Give Greece a chance
2. Extremism from a bygone era
3. Scientists expand excavation of ancient Amphipolis
4. Greece paralyzed by major strike, flights cancelled
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Cosco’s Greek unit adds multinational rail-freight client
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.