Bank of Cyprus unfreezes a part of the deposits

31.01.2014

On 30 of January, 2014 the Board of Directors of Bank of Cyprus was held. On this meeting a decision to unfreeze accounts that had been frozen in July 2013 was made. Soon these deposits will be available for depositors. The initiative to unfreeze accounts was taken by the Deputy Chairman of the Board of Directors of Bank of Cyprus Vladimir Strzhalkovsky. Bank of Cyprus also sought an advice of the Ministry of Finance and the Central Bank of Cyprus.

The decision was taken due to improvement of liquidity position, stability of the bank and increased confidence of depositors, which was observed during the last few months.

In accordance with the plan of the Eurogroup to rescue the banking sector of Cyprus, assets of depositors of Bank of Cyprus were frozen in spring 2013. In the end of July of the same year The Central Bank of Cyprus made a decision to return 100,000 euros to depositors and the remaining sum of money should have been restructured. One part of these funds were converted into shares and the other part was transferred to term deposits with different repayment terms.

Based on: http://www.bankofcyprus.com/en-GB/Start/News/release-of-the-six-month-time-deposits/

Expert’s opinion

On 27 of January, 2014 Bank of Cyprus signed an agreement for the sale of 99.77% of shares of Ukrainian Bank of Cyprus to company “Alfa-Group”. “Alfa Bank” should pay 225 million euros. An advance of 35 millions has already been released to Cyprus. The remaining sum of 190 million will be released on completion of the transaction, which is supposed to be after receipt of regulators in the both countries.

As I understand, no one is going to revive the bank. Its fate is selling of assets and distribution of the money to clients. There is only one question: whether there will be enough money for all clients? 

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)