Cyprus & World News

Bank of Cyprus reaches compromise solution on share capital increase

04 July, 2014

A compromise solution regarding the share capital increase in the Bank of Cyprus (BoC) by at least 1 bln euros was reached on Friday, ahead of the ECB`s crucial stress tests.

The formula was found in a meeting between the Central Bank Governor Chrystalla Yiorkadji and the Chairman and members of the BoC Board of Directors, as well as the bank`s CEO, that lasted for more than two hours.

As CNA learns, the compromise foresees that existing shareholders and prospective investors will have the right to bid in the first stage.

In a second stage, existing shareholders will be able to bid for up to 30% of the shares during an internal procedure. It is noted however that the percentage has not been finalized yet.

The completion of share capital increase seems to extent beyond August 8th, the same sources say.

The Board is currently in session to approve the formula and finalize the details.