Cypriot banks participate in Greek bond swap
Three largest Cypriot banks, Bank of Cyprus, Marfin Popular Bank and Hellenic Bank, announced Wednesday they will participate in the in voluntary exchange of Greek Government Bonds in accordance with the terms of the Private Sector Involvement (PSI) in the Greek bailout plan, agreed by the European Union, as deadline for the participation to the Greek Bond swap is scheduled to conclude on Thursday 20:00 GMT.
Bank of Cyprus announced that Greek government bonds (GGB) impairment amounts to EUR 1.32 billion, whereas Marfin, the most exposed Cypriot bank to Greek bonds, announced that GGB`s impairment following a 60% haircut amounts to EUR 1.96 billion. Hellenic Bank`s impairment reaches EUR 77 million. As a result all three banks announced losses in 2011.
|Name||Impairment in billion|
|Bank of Cyprus||1.32|
|Marfin Laiki Bank||1.96|
Cypriot banks’ exposure to Greek debt was cited as the main reason for repeated downgrades of the Cypriot economy by rating agencies.
Source: Cyprus News Agency