Bank of Cyprus turns cash to equity

Cypriot lender Bank of Cyprus said yesterday it had carried out a conversion of uninsured cash deposits in the bank into equity, one of the conditions of international lenders to offer the cash-starved island financial aid. The process, known as a “bail-in”, made depositors in the bank pay for its recapitalisation, after the institution was hit by massive losses from its exposure to debt-crippled Greece. Bank of Cyprus said it had converted 37.5 per cent of deposits exceeding €100,000 into “class A” shares, with an additional 22.5 per cent held as a buffer for possible conversion in the future. Another 30 per cent would be temporarily frozen and held as deposits.