Announcements


BANK OF CYPRUS & other Cyprus Banks secure and back in Business.

 

Bank of Cyprus announced EUR29 million net profit for the quarter ended 31 March 2015

 

Bank of Cyprus Group announced €29 million after tax profit for the quarter ended 31 March 2015, compared to a loss of €337 million for the fourth quarter 2014.

 

The Common Equity Tier 1 capital (CET 1) ratio (transitional basis) stood at 13,9% at 31 March 2015, while the fully loaded CET 1 ratio totalled 13,4%.

 

According to Mr John Patrick Hourican the CEO of the Bank:

 

 ’We have made good progress against our strategic objectives during the first quarter, most notably reducing ELA by €500 mn to €6,9 bn, and to a current level of €6,4 bn, and continuing to stabilise our deposit base, while maintaining our capital position. The loan to deposits ratio improved to 138%, partly because of the continuation of positive customer flows, which is evidence of the increasing trust and confidence of our customers. Furthermore, the improvement in the Bank’s core results continued, with profit after tax from continuing operations totalling €57 mn, compared to a loss of €107 mn for 4Q2014.

 

The Bank’s significantly strengthened capital position and overall improvement in its financial position enhance its funding options and will facilitate access to the capital markets, especially following the recent successful debt raising by the Republic of Cyprus. Depending on market conditions and investor appetite, the Bank will assess the possibility of raising wholesale funding, with the proceeds of such funding used to reduce ELA’

 

Please click  here for the announcement.

 

 

Moody's upgrades Bank of Cyprus covered bond ratings and affirms Caa3 debt and deposit ratings

 

On 28 May 2015 Moody's Investors Service upgraded to B1 from B3 (on review for upgrade) the ratings on the mortgage covered bonds of Bank of Cyprus Public Company Limited.

 

Please click  here for the announcement.

 

Moody's Investors Service affirmed the long term deposits rating at Caa3 and the caa3 standalone baseline credit assessment (BCA) of Bank of Cyprus Public Company Limited (BoC).

 

The affirmation of the ratings reflects the progress the bank has made with its restructuring plan through the early disposal of non-core assets, the reduction of emergency liquidity assistance and the stabilization of its deposit base despite the full abolition of external capital controls in Cyprus. However, the rating affirmations also reflect the significant challenges the bank still faces in terms of improving its asset quality and reducing its reliance on Central Bank funding.

Please click  here for the announcement.

 

 

Fitch Upgrades Bank of Cyprus

 

On 28 April 2015, Fitch Ratings upgraded Bank of Cyprus Public Company Ltd's (BoC) Long-term Issuer Default Rating (IDR) to 'CCC' from 'CC' and  BoC's Viability Rating (VR) to 'ccc' from 'cc'. These upgrades mainly reflect improved capital buffers following the completion of equity issuances and evidence of better deposit dynamics amid the gradual relaxation of capital controls, which were fully lifted by the authorities in early April 2015. BoC's rating actions also highlight progress made in asset de-leveraging, enabling a reduction of its reliance on Central Bank funding.

 


There are currently no Announcements.
 

Announcements


CYPRUS ECONOMY

 

Cyprus returns to International Markets with a EUR 1 billion Bond Issue

 

On 28 April 2015 the Public Debt Management Office of Cyprus announced the issue of EUR1 billion seven-year government bonds at a coupon rate of 3.875%. The yield of the bond issue stood at 4%. There were offers of about €1,9 billion of which €1 billion were accepted. This is the first bond issue addressed to foreign investors since June 2014, and it is an encouraging sign of the recovery of the Cypriot economy.

 

According to the Cyprus Finance Minister Mr Harris Georgiades, ‘the issue affirms that confidence has been restored in the Cypriot economy which will help the country emerge from recession. The money will be used to pay off older, more expensive debt and inject fresh liquidity in the economy.’

 

In the same announcement by the Cyprus Associated Press, Georgiades said that ‘the country won't need all of its 10 billion euro ($10.93 billion) rescue loan because Cypriot banks won't need further state support and budget deficits have been reined in’.

 

Please click  here for Cyprus Ministry of Finance Press Release.

  

 

Successful completion of periodic review of Cyprus economic reform program

 

Following the recent visit to Nicosia by teams from the International Monetary Fund (IMF) and the European Commission (EC), in liaison with the European Central Bank (ECB), to review Cyprus's economic reform program, staff-level agreement has been reached on policies that could serve as a basis for completion of the reviews.

 

According to the statement issued by the European Commission, the ECB and the IMF on May 20 2015, ‘A key policy reform of the program has been the adoption of modernized insolvency and foreclosure frameworks, which are needed to reduce the high level of non-performing loans, an essential step to restoring growth and job creation in Cyprus. The main elements of these frameworks are now in place, which has allowed for the finalization of the staff-level agreement’.

 

‘The authorities should maintain the structural reform momentum. The reform of the public sector administration is key in this respect. Timely implementation of the privatization plan is necessary to increase economic efficiency, attract investment, and reduce public debt’.

 

Conclusion of the reviews is subject to the approval process of both the European Union and the IMF, which will be initiated shortly.

 

Please click  here for the Statement by the European Commission, the ECB and the IMF on Cyprus.

  

 

Lifting of all restrictions on capital movement

 

On April 3 2015, the President of the Republic of Cyprus announced the lifting / abolishment of the last restrictions on capital outflows.

 

According to President Nicos Anastasiades, ‘The lifting of the restrictions represent the full restoration of confidence in the country’s banking sector’.

 

Please click  here for the press report in New York Times. 

 

The Government spokesman, N. Christodoulides, also commented to Bloomberg: “The lifting of the restrictions confirms the full restoration of confidence in the banking system, the significantly improved business climate and essentially marks the return of the economy to normal conditions’.

 

Please click  here for the press report. 

 

 

Cyprus: The Recovery Story

 

Please click  here to view a film prepared by the Cyprus Investment Promotion Agency (CIPA), that highlights the positive developments occurring in the Country as well as the current and emerging investment opportunities.


There are currently no Announcements.
 

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