Bank of Cyprus (BOC) will Friday release €950 million in fixed-term deposits, reflecting confidence in its own stability and injecting into the island’s economy.
According to the bank, an “improving liquidity position” and “stabilising signs of its deposit base” were the decisive reasons behind releasing the deposits. The released funds will still be subject to capital controls enforced last year to prevent money leaving the country in the wake of the bailout.
Only 20% (€190m) of the deposits will become available immediately with the remaining 80% being renewed as fixed-term deposits for at least one month.
The move is the first major release of funds by Bank of Cyprus since it seized 47.5% of uninsured deposits exceeding €100.000 and converted them into equity, giving its clients a stake in the bank.
The move opens the way for Finance Minister Haris Georgiades to further loosen restrictions on the movement of capital.