Cyprus & World News

Will EBRD pay €450m for Laiki’s 18% in Bank of Cyprus?

13 May, 2014

Finance Minister Harris Georgiades has informed the other two members of the Resolution Authority, Central Bank Governor Chrystalla Yiorkadji and the Chairwoman of the Securities and Exchange Commission, Demetra Kaloghirou, that the government is considering handing over the management of legacy Laiki Bank’s 18% share in Bank of Cyprus, to the European Bank for Reconstruction and Development.
Laiki’s value after the forced closure of the bank and the merger of its operations with Bank of Cyprus is estimated at 450 mln euros.
The EBRD had said last Friday that it will decide at its annual meeting in Warsaw on May 14-15 whether Cyprus should temporarily become a recipient of financing, following a request for assistance from the Cyprus government.
The bank said in a statement that the decision will be taken by the board of governors, representing the bank’s shareholders represented by their respective finance ministers, including Harris Georgiades.
“The Warsaw decision on whether to provide finance for founding EBRD shareholder Cyprus follows a formal request from the government made in February. In asking for a change in its status, the authorities said a temporary engagement by the Bank would be a positive contribution to efforts to reform and restructure the Cyprus economy,” EBRD said.