CBC continues contacts on 18% of Bank of Cyprus share capital owned by Laiki

The Central Bank of Cyprus (CBoC), in its capacity as Resolution Authority, continues on Wednesday its contacts with stakeholders on the issue of the 18% of the share capital of Bank of Cyprus (BoC), owned by the former Cyprus Popular Bank (CPB or Laiki).

CBoC met yesterday with BoC’s major shareholders and today it will be meeting with Laiki Bank Depositors Association, SYKALA, at 3.30 in the afternoon.

According to a CNA source, a new meeting with BoC’s major shareholders is scheduled for the 20th of August.

According to a decision taken recently by the CBC Board of Directors, the contacts aim at reaching optimum decisions as regards the administration of the percentage held by Laiki Bank in the share capital of the Bank of Cyprus.

Excluded from international capital markets since April 2011, Cyprus applied for financial assistance from the EU bailout mechanism, as its two largest banks, Bank of Cyprus (BoCY) and Cyprus Popular Bank (CPB) requested state support following mammoth losses as a result of the Greek sovereign debt haircut.

In late March this year, the authorities and the Troika (European Commission, European Central Bank and the IMF) agreed on a €10 billion financial assistance package which featured a haircut on uninsured deposits at the Bank of Cyprus and Laiki Bank.

Laiki, which is being wound down and merged with Bank of Cyprus, is currently the largest single shareholder in Bank of Cyprus with 18% of shares.