Brussels, 30/01/2014 (Agence Europe) - The Bank of Cyprus, the country's biggest bank, decided on Thursday 30 January to release fixed-term deposits (six-month time deposits that were blocked as per the decrees relating to the recapitalisation of the bank in July 2013 and mature on 31 January 2014).
Despite the Bank's right for the automatic renewal of these deposits, totalling €950 million, for another six months, the Board of Directors has proceeded with the release of deposits because of its improving liquidity position and the stabilising signs of its deposit base. Part of the remaining amounts (deposits of over €100,000) were placed in 6-, 9- and 12-month time deposits under the July 2013 decree, with the bank maintaining the right to renew them automatically. Bank of Cyprus explains that the released funds will be subject to the general restrictive measures currently applicable in the Cypriot banking system. The Cypriot finance ministry and Central Bank say the decision “indicates that our banking system is on the course to stabilisation and will help strengthen the confidence of the public and investors in our banking system”. (EL/transl.fl)