Brussels, 29/07/2013 (Agence Europe) - On Sunday 28 July, Cyprus' troika of lenders (European Commission, European Central Bank and International Monetary Fund) succeeded in coming to an agreement with the Cypriot government on the size of the final raid on deposits in the Bank of Cyprus (BoC) bail-in, a government source told EUROPE on Monday 29 July.
The Cypriot authorities are reported to have fought to have as small a raid as possible on unsecured deposits (of above €100,000). In addition to the 37.5% of deposits already converted to bonds, a further 10% will be raided for the bank restructuring, which is due to be completed on Wednesday, thus paving the way for release of the remaining 42.5% of the deposits in question, which have been blocked while awaiting the outcome of an assessment of the bank by KPMG.
As may have been gleaned from the conclusions of the assessment published by KPMG last week (see EUROPE 10893), the final raid on unsecured deposits at the BoC will be 47.5% in total in order that the bank achieve a core tier 1 solvability ratio of 9% by the end of the aid programming period. The news of the second raid will be published shortly. Cyprus' lenders are due to leave the capital, Nicosia, on Wednesday, when they will submit an assessment of implementation of the Cypriot structural adjustment programme, which Nicosia expects to be positive. (EL/transl.fl)