NICOSIA, Cyprus (AP) The Cypriot government wants the restructuring of the bailed-out country's biggest bank to be completed by the end of this month, its spokesman said Tuesday.
Christos Stylianides said that once the restructuring is completed, management of the bank will return to its directors and shareholders.
The
Bank of Cyprus had to absorb the country's now defunct second largest lender, Laiki, as part of a 23 billion euro ($30.3 billion) financial rescue deal that Cyprus agreed in March with its euro area partners and the International Monetary Fund.
With the merger, Bank of Cyprus was also forced to shoulder billions of Laiki debt which has left its cash reserves at dangerously low levels.
As a condition for receiving a 10 billion euro loan, the Cypriot government forced savers in both banks to take huge losses on deposits over 100,000 euros to cover losses at Bank of Cyprus.
