Bank of Cyprus Chairman, Kristis Hassapis announced officially on Thursday the release of deposits of €900 million, noting the stabilization of the deposit base of the bank.

The release concerns the six-month time deposits that were blocked as per the decrees relating to the recapitalisation of the Bank in July 2013 and mature on 31 January 2014

Mr. Hassapis, who read out the announcement of the Board, said that the Board of Directors has proceeded with the release of deposits, following consultations with the Ministry of Finance and the Central Bank of Cyprus.

"The Bank’s improving liquidity position and the stabilizing signs of its deposit base witnessed during the last few months are the decisive reasons for the release of deposits," he said.

"Through its decision the Bank’s management recognises the improving trust and confidence towards the Bank by its customers and, in tandem, meets the expectations of the general public in Cyprus for enhancing the liquidity in the economy.," he concluded.

An important decision

The Ministry of Finance and the Central Bank of Cyprus (CBC) consider the decision of the Bank of Cyprus to release fixed-term deposits as very important.

This move by the Bank of Cyprus indicates that our banking system is on the course to stabilization and will help to strengthen the confidence of the public and investors in our banking system.

“The Ministry of Finance and the CBC will continue their efforts to fully restore financial stability which, in turn, will be essential for the recovery of the Cyprus economy”, the announcement concluded.