Bank of Cyprus ends rumors on insight conflict

07.07.2014

Bank of Cyprus announced that the Board of Directors decided to consider the possible investors for the increase of capital. Therefore, the rumors about internal conflict between the Board of Directors and management with regards to the restructuring and recapitalization strategy of the Bank of Cyprus ended up.

Management of the group said that they will directly cooperate with institutional investors. The possible transaction shall be structured in the way that today’s shareholders can have a say in the decision-making process, the announcement said.

The capital of the Bank of Cyprus is expected to increase with 1 billion euro. The transaction shall start at the end of the July, but no later than 25^th. The transaction is expected to end on the 8^th of August. The increase of the capital and restructuring will promote the increase of competitiveness and economic stability of the financial group.

Source: http://www.bankofcyprus.com/Documents/Investor%20Relations/Press%20Releases/ENG/20140704AnnouncementCapitalENG.pdf

Expert’s opinion

Bank of Cyprus may again withdraw its shares on the stock-exchange after it will attract the investor.

The trust to the bank will increase with the stable share value and positive trend of the value growth.

And money trust the banks that trust them, apologies for the tautology.

Cyprus is recovering from the cold spring of 2013.

Yaroslav Lomakin ( Managing Partner, Honest&Bright)