04/01/2013 16:45
Bank of Cyprus has requested for a joint meeting between the Ministry of Finance, the Central Bank of Cyprus and the Cyprus Securities & Exchange Commission to discuss the issue and conclude on a plan, that would be acceptable by all relevant authorities and would be in line with the Rules for State Aid of the European Union, before offering this plan to the holders of capital securities.
The details of the final plan will be announced once all relevant approvals are received. The plan will be subject to approval by an Extraordinary General Meeting of its shareholders.
According to the announcement, on January 2, 2013, Bank of Cyprus management met with the representatives of the Capital Securities Holders Association, as part of the on-going attempt to resolve the capital securities issue.
The bank clarified that during the meeting, the provisions of the Memorandum of Understanding between the Cyprus Republic and Troika were discussed among other issues. “These provisions state that all Capital Securities need to be converted into ordinary shares before the provision of any state aid to the Banking Sector and refer to ways to ease the consequences to the capital securities holders. Despite that no final decision for a specific plan was reached during the meeting, a number of views were exchanged that had been previously discussed and for which the Bank and the representatives of the association undertook to revisit”, it added.
The details of the final plan will be announced once all relevant approvals are received. The plan will be subject to approval by an Extraordinary General Meeting of its shareholders.
According to the announcement, on January 2, 2013, Bank of Cyprus management met with the representatives of the Capital Securities Holders Association, as part of the on-going attempt to resolve the capital securities issue.
The bank clarified that during the meeting, the provisions of the Memorandum of Understanding between the Cyprus Republic and Troika were discussed among other issues. “These provisions state that all Capital Securities need to be converted into ordinary shares before the provision of any state aid to the Banking Sector and refer to ways to ease the consequences to the capital securities holders. Despite that no final decision for a specific plan was reached during the meeting, a number of views were exchanged that had been previously discussed and for which the Bank and the representatives of the association undertook to revisit”, it added.
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