Rumours that the bank's management had been considering a capital increase in order to strengthen its buffers against mounting non-performing loans, and in light of the upcoming stress tests by the
"The Group is proceeding with the assessment of potential investor interest regarding these options and will issue further announcements when and if there is further tangible progress, subject to approval of the Board of Directors in a future Board meeting," the announcement read.
The news came after the
The partial repayment, the bank said in a statement earlier in the week, will total €950 million. It will increase the bank's core-tier 1 capital by 0.4 per cent to 10.6 per cent.
But the BoC has variously been urged to go to the markets for a capital injection, both by Finance Minister
"I believe this target is achievable," Georgiades said earlier in the week, with regard to the prospect of local banks tapping investor confidence in the Cypriot financial system. He offered last week's successful sovereign debt issue to international investors as evidence of such confidence.
Despite the BoC's vague announcement, local media reported that the lender's management has come to a decision to raise capital through a share issue, but did not vote on it as the details had not been finalised. The capital increase, reports said, could range from €800 million to €1 billion, and will be completed by mid-September.
The BoC's consultants
The consultants advised the BoC that several foreign funds have expressed interest to invest in the bank, citing their own research.
Meanwhile, Thursday's 10-hour board meeting also decided the recruitment of two deputy CEOs, who are expected to assume their duties in July.
The hiring of a deputy CEO had been tabled some months ago by the board, causing suspicions of a rift between the board and executive management – which the deputy CEO would ostensibly help bridge by keeping executive boss
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