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Press: BOCY to issue capital

27/06/2014 07:25
The major issues in today’s financial press are the meeting of the Board of Directors of Bank of Cyprus, which decided to increase the share capital of the bank, the ERC data on the economic sentiment in June and the haircut of the government bonds by decision of the European Banking Authority.

The “Economy” inset of newspaper “Phileleftheros” refers to yesterday’s meeting of the Board of Directors of Bank of Cyprus, which decided the increase in the share capital. As noted, the decision was taken after a marathon meeting and until September the bank will address to old and new shareholders for capital. In the next few days, the amount of issue that will fluctuate between €500 million and €1 billion will be clarified and will be carried out via the method of private placement. It will address to existing and new shareholders.

Elsewhere the newspaper reports that according to the Economic Research Centre of the University of Cyprus, the economic sentiment in June recorded a slight increase of 0.6 points to 101.3 points from 100.7 points in May.

Other headlines:

-Auditors in Coops to the public sector

-New dispute for fiscal collapse

-Publication of revaluation of properties in early July the latest

The “Economy” inset of newspaper “Politis” refers to the decision of Bank of Cyprus to increase its share capital. According to the report, the procedure will have many stages and the Board will have a ‘say’ in every step, such as the seeking of investors, their location, a possible invitation for talks, the organization of a roadshow and the opening of a book of offers.

“Politis” also reports that the General Secretary of OEB, Marios Tsiakkis, confirmed the investors’ interest from Russia for the privatization procedure.

Other headlines:

-Bond payment proceeds – The €950m will reduce BOCY’s dependence on ECB

-Audit service of Coops closes

-The big decline in property prices increases transactions

-Economic sentiment continues its upward trend

The “Economy” inset of newspaper “Simerini” refers to the haircut of the Cypriot government bonds by decision of the European Banking Authority. As noted, EBA cuts the Cypriot government bonds by 16.5%, held by Bank of Cyprus, Hellenic Bank and the Coop. The decision hits the three banks since they are forced to find new additional capital for stress tests purposes.

The newspaper also refers to the bills forwarded to the Parliament, which promote the final closing of the state fair, the dissolution of the audit service of the Coops and the establishment of social support organizations.

Other headlines:

-Summer…with limos

-Revaluations every year – Property tax to be imposed on the basis of those revaluations

-Maximum war for the minimum – Andros Kyprianou and Labour Ministry

The “Economy” inset of newspaper “Haravgi” refers to the fears expressed by AKEL MP, Aristos Damianou, that the middle and lower classes might be burdened by the property tax.

“Haravgi” also reports that the procedures for the finding of a strategic investor in Cyprus Airways have reached mature stages.

Other headlines:

-BOCY invitation to investment funds

-News on limousines in October

-Advice for restructuring of loans

-Violations in hotels organized and mass

The “Economy” inset of newspaper “Alithia” refers to the press conference of DIKO President, Nicolas Papadopoulos. Mr. Papadopoulos reiterated his position that there are specific terms and provisions of the memorandum that need to be negotiated. These include the increase of the funding amount of the Republic and the CB instructions for the non-performing loans.

Elsewhere the newspaper reports that according to the Property Price Index, flat prices recorded an annual decrease of 0.7% and house prices of 7.8%.

Other headlines:

-Vote for it before July 30

-Potential investors for CAIR

-€950m to BOCY

-Temporary arrangements for appointments in public sector