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Bank of Cyprus Reduces Dependency

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Yesterday, the Bank of Cyprus stated that it will downsize its EBC funding dependency by €0.95 billion, as a result of a government bond repayment portion.

The Cypriot financial institution reported that the Public Debt Management Office of the Republic of Cyprus confirmed, that the nation's government will partially reimburse a €1.987 million euro sovereign bond in the amount of €950 million euros, on July 1st. The Bank stated, "This will have a positive impact on the Bank's liquidity, profitability and capital position", as reported by Parikiaki.

The Bank of Cyprus added, "The bond was pledged as collateral with the ECB and the amount repaid will allow the bank to reduce its ECB funding by approximately €550 million...the remaining amount will be used to reduce ELA by approximately €400 million".

The Bank concluded its statements with: "The above development is another positive contribution to the progress being made by the Bank in its journey back to strength. The Bank continues to deliver on its strategy to deleverage and focus on its core businesses in Cyprus. The relentless focus on asset quality, funding, capital and efficiency will restore the Bank's financial strength enabling it to support the recovery of the Cypriot economy".

(Source: http://www.parikiaki.com/2014/06/bank-of-cyprus-to-reduce-dependency-from-ecb-funding-by-e095-billion/)