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CBC issues ultimatum to Bank of Cyprus

Staff writer |
The Central Bank of Cyprus (CBC) set a three-day deadline to Bank of Cyprus (BOC) to take action on a further capital increase.

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CBC Governor Chrystalla Georghadji, who represents Cyprus on the European Central Bank Board, told BOC's board of directors in a letter it has to move by Friday to confirm adherence to an earlier agreement on a timeframe to bolster its capital.

The letter, which was dubbed by Cypriot media as an ultimatum, was the second one in two days by Georgadji to BOC's board chairman Christis Hasapis.

"As has repeatedly been explained to you, strengthening the bank's capital base was deemed necessary by the Central Bank, both in light of the upcoming results of the ongoing stress tests (by the European Banking Authority), and in order to satisfy a term in the troika Memorandum of Understanding," the letter said.

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