CYPRUS and its international lenders have agreed to convert 47.5 per cent of deposits exceeding €100,000 (£86,310) in Bank of Cyprus to equity to recapitalise it, banking sources said yesterday.
Under a programme agreed between Cyprus and lenders in March, large depositors in Bank of Cyprus were earmarked to pay for the recapitalisation of the bank.
The state also received €10bn in aid from the EU and the International Monetary Fund.
Authorities initially converted 37.5 per cent of deposits exceeding €100,000 into equity, and held an additional 22.5 per cent as a buffer in the event of further needs.
“There was an agreement concluding at a final figure of 47.5 per cent this morning,” a source close to consultations said.
Earlier this month the bank introduced a voluntary redundancy scheme for staff to cut costs.
City A.M. Reporter