Nicosia wants BoC restructured by end-July

The Cypriot government wants the restructuring of the bailed-out country’s biggest lender, Bank of Cyprus, to be completed by the end of this month.

Government spokesman Christos Stylianides said on Tuesday that once the restructuring is completed, management of the bank will return to its directors and shareholders.

Bank of Cyprus had to absorb the country’s now-defunct second-largest lender, Cyprus Popular (Laiki), as part of a 23-billion-euro financial rescue deal that was agreed in March with Cyprus’s euro-area partners and the International Monetary Fund.

Under the deal, savers in both banks were forced to take huge losses on deposits over 100,000 euros in order to cover for losses at Bank of Cyprus.