[su_expand height=”80″ link_color=”#9e872c” link_style=”button” link_align=”right” more_icon=”icon: angle-down” less_icon=”icon: angle-up”]As Central Bank of Cyprus stated this is a significant progress at Bank of Cyprus (BoC) with the completion of the recapitalization and the exit from resolution.

The recapitalization ensures that the BoC well exceeds its minimum capital adequacy ratio. Based on the latest financial information, BoC’s Common Equity Tier 1 ratio is estimated to stand at around 12%.
The Central Bank of Cyprus, Ministry of Finance and representatives of the Troika agreed on the BOC fully recapitalized today by the overall conversion of 47,5% of uninsured deposits into shares in the bank, thus putting an end to a period of uncertainty. This is the final stage of the bank’s resolution process and there will be no further measures under the Resolution Law.
Following the recapitalization, 12% of deposits that were previously blocked will be released (5% in total).
The share structure of BoC will be amended so that all shareholders hold ordinary shares. The new structure will be compliant with the European Capital Requirements Regulation.
The recapitalization of Bank of Cyprus and the output of the resolution regime are important milestones to strengthen the financial position of banks and stabilize Cyprus financial sector, since following such recapitalization Bank of Cyprus starts again its operations on much stronger foundations.