CYPRUS: Capital shortfall for BOC and CPB at 1.855 million euros

The European Banking Authority’s final assessment of the capital exercise covering 71 banks showed that the shortfall for the two Cypriot banks, Bank of Cyprus and Cyprus Popular Bank reached €1.885 million.

The shortfall for Bank of Cyprus stands at €730 million, whereas the corresponding figure for Cyprus Popular Bank reached €1.125 million. The shortfall will be covered by the Euro area member-states through the EFSF/ESM, as part of Cyprus’ application for financial support.
Preliminary discussions leading to a Memorandum of Understanding have already taken place and further discussions are expected during the current month in order to finalise and sign the Memorandum of Understanding. Under the EU/IMF programme, an asset quality review of the Cypriot banks will start very shortly, including a stress test exercise, with the aim to determine the eventual capital needs of the banks.

The initial result of EBA’s capital exercise showed that Bank of Cyprus capital shortfall was at €1.560 million, whereas the shortfall for Cyprus Popular Bank stood at €1.971 million. Both Banks have requested financial support from the state.
The Cypriot government has acquired shares worth €1.800 million from Cyprus Popular Bank.