26/03/2013 12:15
Central Bank of Cyprus issued a decree yesterday for the sale of the two largest Cypriot banks, using the recent law framework for the consolidation of the banks.
The decrees are the same for both banks, Bank of Cyprus and Laiki Bank.
“The Consolidation Authority, in exercise of the powers conferred by Articles 3, 5, 6, 7, 9 and 13 of the Consolidation of Credit and Other Institutions Law of 2013, after a joint decision with the Minister of Finance for the taking of consolidation measures and having taken into account the opinion of the Minister of Finance on the implementation of the specific consolidation measure, the report of the supervisory authority and the consolidation plan and having ascertained that the conditions of Article 6 are valid, it issues the following decree:
1. This decree will be cited as the Sale of Bank of Cyprus Public Company Ltd / Cyprus Popular Bank Ltd decree of 2013.
2. The purpose of this decree is to sell the activities of Bank of Cyprus / Cyprus Popular Bank.
3. The procedures described in this decree shall be construed as action measures designed to safeguard the financial condition of the seller and which fall within the scope of Article 33 (1) of the Banking Laws of 1997 to 2013.
4. Under this decree, the Consolidation Authority applies the measure of sale of operations of Bank of Cyprus / Cyprus Popular Bank.
5. A. The Consolidation Authority may apply any other consolidation measure provided in the Consolidation of Credit and other Financial Institutions Law of 2013.
B. The consolidation authority may apply any other power provided by the consolidation of credit and other institutions Law of 2013.
6. This decree shall apply from the date of its publication in the Gazette.
The Eurogroup decision stated that "Cyprus Popular Bank will be consolidated soon – with the full participation of shareholders, bondholders and uninsured depositors with the decision of the Central Bank of Cyprus using the recently adopted legal framework for the consolidation of banks.
Cyprus Popular Bank will be partitioned into good and bad bank and the bad bank will be liquidated over time.
The decision does not indicate that Bank of Cyprus will be consolidated but that it will absorb the good bank, using the same legal framework, and after hearing the Boards of both banks.
The uninsured deposits will be blocked until the recapitalization of Bank of Cyprus is implemented and then they will be subject to specific regulations.
The Central Bank announced yesterday that it has appointed Ntinos Christofides as Special Administrator for the implementation of the consolidation measures in Bank of Cyprus and Andri Antoniades as a Special Administrator for the implementation of the consolidation measures in Cyprus Popular Bank.
The Central Bank of Cyprus announced yesterday that under its responsibilities of a consolidation authority, has today appointed Ntinos Christofides and Andri Antoniades as qualified administrators for the implementation of the consolidation measures in Bank of Cyprus and Cyprus Popular Bank, respectively.
The decrees are the same for both banks, Bank of Cyprus and Laiki Bank.
“The Consolidation Authority, in exercise of the powers conferred by Articles 3, 5, 6, 7, 9 and 13 of the Consolidation of Credit and Other Institutions Law of 2013, after a joint decision with the Minister of Finance for the taking of consolidation measures and having taken into account the opinion of the Minister of Finance on the implementation of the specific consolidation measure, the report of the supervisory authority and the consolidation plan and having ascertained that the conditions of Article 6 are valid, it issues the following decree:
1. This decree will be cited as the Sale of Bank of Cyprus Public Company Ltd / Cyprus Popular Bank Ltd decree of 2013.
2. The purpose of this decree is to sell the activities of Bank of Cyprus / Cyprus Popular Bank.
3. The procedures described in this decree shall be construed as action measures designed to safeguard the financial condition of the seller and which fall within the scope of Article 33 (1) of the Banking Laws of 1997 to 2013.
4. Under this decree, the Consolidation Authority applies the measure of sale of operations of Bank of Cyprus / Cyprus Popular Bank.
5. A. The Consolidation Authority may apply any other consolidation measure provided in the Consolidation of Credit and other Financial Institutions Law of 2013.
B. The consolidation authority may apply any other power provided by the consolidation of credit and other institutions Law of 2013.
6. This decree shall apply from the date of its publication in the Gazette.
The Eurogroup decision stated that "Cyprus Popular Bank will be consolidated soon – with the full participation of shareholders, bondholders and uninsured depositors with the decision of the Central Bank of Cyprus using the recently adopted legal framework for the consolidation of banks.
Cyprus Popular Bank will be partitioned into good and bad bank and the bad bank will be liquidated over time.
The decision does not indicate that Bank of Cyprus will be consolidated but that it will absorb the good bank, using the same legal framework, and after hearing the Boards of both banks.
The uninsured deposits will be blocked until the recapitalization of Bank of Cyprus is implemented and then they will be subject to specific regulations.
The Central Bank announced yesterday that it has appointed Ntinos Christofides as Special Administrator for the implementation of the consolidation measures in Bank of Cyprus and Andri Antoniades as a Special Administrator for the implementation of the consolidation measures in Cyprus Popular Bank.
The Central Bank of Cyprus announced yesterday that under its responsibilities of a consolidation authority, has today appointed Ntinos Christofides and Andri Antoniades as qualified administrators for the implementation of the consolidation measures in Bank of Cyprus and Cyprus Popular Bank, respectively.
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