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Pimco and Troika missions leave Cyprus - Talks to continue via teleconference

17 January, 2013

Representatives of the US-based investment management firm Pimco and Cyprus’ international lenders departed from Cyprus on Wednesday after intensive talks on Tuesday.

CNA sources say that talks on the total amount needed for the banking sector’s recapitalization will continue during the days to come via teleconference.

Pimco representatives were on the island to participate in a meeting of the Steering Committee on issues related to Pimco’s estimations as regards the total amount of the Cypriot Banks’ capital needs.

The Steering Committee oversees the due diligence review on the Cypriot financial system carried out by Pimco.

It includes representatives from the European Commission, the European Central Bank, the European Stability Mechanism, the International Monetary Fund, the European Bank Authority, Cyprus Finance Ministry, the Central Bank of Cyprus and Cyprus Authority for the Supervision and Development of Cooperative Societies.

After a lengthy meeting of the Steering Committee which started at 08.30 on Tuesday and concluded after 23.00, negotiations on matters which have to do with the total amount for recapitalization needs will continue during the days to come via teleconference.

Representatives of Pimco did not meet as expected with the leadership of the Cyprus Popular Bank and the Bank of Cyprus, in Nicosia having instead asked and received data on loans relating to the property sector.

The capital needs of the financial sector will be part of Cyprus` financial assistance package estimated at €17.5 billion, of which up to 10 billion will be used for recapitalizing the banking sector, which posted mammoth losses as a result of the Greek debt haircut and its exposure in the Greek economy.