News Column

Cyprus President Blocks Sale of Bank of Cyprus in Greece

March 24, 2013

Nicosia (dpa) - Cypriot President Nicos Anastasiades blocked the sale of the Greek branches of Cypriot lenders on Sunday, after negotiations between the country's creditors reached a deadlock.

Cypriot bank officials told dpa that Anastasiades made a stop-over in Athens on his way to Brussels to stop the sale, which would have off-loaded more than 5 billion euros of bad assets onto the Bank of Cyprus.

Negotiations between Cypriot officials and its potential creditors reached a deadlock late on Saturday because of the demand by the International Monetary Fund (IMF) for the country's largest lender, the Bank of Cyprus to take on the assets of the second largest lender, Laiki.

The IMF said the Bank of Cyprus had to absorb the good assets of Laiki but also take on its 9-billion euro debt as well.

On Friday, parliament had voted for Laiki to be split into a good and bad bank.

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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