Cyprus Government appoints three members of the CB Board of Directors

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The Council of Ministers has appointed three members of the Central Bank’s Board of Directors.

According to an official announcement, issued here Tuesday, the Cabinet appointed on May 24 Alexander Michaelides, Michael Spanos and Stelios Kiliaris as the new members of the CB’s Board of Directors.

With this appointment, the Government replaced the three members of the Board, Andreas Matsis, Charalampos Achniotis and Louis Christofides, who had resigned.

CB’s Governor Panicos Demetriades and Nicos Constantinou are the two others members that complete the five-member Board of Directors of the CB.

The Central Bank is expected now to proceed with the of appointment of the independent firm, which will conduct the evaluation of the Bank of Cyprus’ assets, something that will determine the final amount of haircut on the uninsured deposits. The evaluation is expected to conclude by the end of July.

Following decisions by the Euro area Finance Ministers, collectively called as the Eurogroup, Cyprus will receive a €10 billion bailout from the ESM and the IMF after bailing in bank uninsured deposits in a bid to recapitalize the island`s troubled banks, which posted massive losses worth of €4.5 billion due to the Greek sovereign debt haircut.

Furthermore, the island`s second largest bank, Cyprus Popular Bank, is wound down and its good part (loans and deposits below €100,000) is folded in Bank of Cyprus (BoC).

So far 37.5% of uninsured deposits in BoC have been converted into equity, whereas an additional 22.5% remains frozen until the conclusion of an independent evaluation of the Bank`s balance sheet after absorbing the good part of the Cyprus Popular Bank.