Bank of Cyprus finally recapitalised

Today The Central Bank of Cyprus and The Ministry of Finance and announced that the Bank of Cyprus has been fully recapitalised by the overall conversion of 47,5% of uninsured deposits into shares in the Bank of Cyprus.

Furthermore it was stated the shares shall be of €1,00 of nominal value each, and are likely to be allotted to the new shareholders by the end of August this year.

Following the recapitalisation, 12% of deposits, which had been blocked earlier this year, will be released and transferred to current account in the Bank of Cyprus.

The remaining 88% of the deposits in the total amount of 37.5 will be split evenly into three independent – six, nine and twelve months’ time deposits with increased interest rates,. For 6 months deposits the rate will be 2.95% comparing to previous 2.50% for 6 months deposits). The deposit for the period of 9 months will receive 3.125% as opposed to the previous interest 2.75% and finally the 12 months deposit rate will be 3.4% to the 3% respectively.

However there are several rrestrictive measures by Bank of Cyprus on the deposits and namely, there is a provision for renewal for another period of the same duration in the first end of the deposit period. There is no termination of the deposit period, unless it is needed for repayment of loan, overdraft and or credit card within the Bank of Cyprus or alternatively it is placed to create two or more deposits.