Cyprus prepared to get best possible assessment from Troika, says President

Cyprus is sufficiently prepared to get the best possible results in relation to the first evaluation of the implementation of its adjustment program, President Nicos Anastasiades has said.

In statements on the sidelines of his visit to the headquarters of the National Guard on Friday, President Anastasiades said that the evaluation is still in its early stages and any forecast would be neither rational, nor objective.

He noted that on Saturday there will be a crucial meeting on the financial system, referring to the submission by KPMG of an interim report on the valuation of the Bank of Cyprus assets to Troika, CBC and Finance Ministry representatives.

The President invited everybody to be patient and stressed that “we are sufficiently prepared to get the best possible results”.

KPMG’s final report is expected by July 22, in order to start evaluating the additional haircut percentage to be imposed on uninsured depositors.

Under a 10 billion euro international aid package agreed in March, Cyprus closed one bank, the Popular Bank, whereas deposits with more than 100,000 euros held at the biggest lender, Bank of Cyprus, lost 37.5% of their value, after being converted into bank shares.

Losses could go up to an additional 22.5%, depending on the final assessment of bank needs. The goal is to meet the 9% Core Tier 1 ratio, during a stress test.