EBRD to fund up to 120 mln euros of 1 bln euro Bank of Cyprus capital raise
LONDON, July 29
LONDON, July 29 (Reuters) - The European Bank for Reconstruction and Development said on Tuesday it would put in up to 120 million euros of the 1 billion euros of new capital raised by Cyprus's largest bank that was almost crippled by the country's crisis.
Bank of Cyprus made history in the euro zone debt crisis as the first bank forced to convert uninsured deposits into equity as a condition for Cyprus to receive 10 billion euros in aid from the European Union and the International Monetary Fund.
The EBRD announced on Tuesday that it would invest up to 120 million euros as part of the bank's restructuring programme. Bank of Cyprus said earlier that it plans to sell up to 1 billion euros in bonds in September.
"As the largest bank in the country, Bank of Cyprus' performance is highly correlated with economic activity in the country. The stabilisation and successful restructuring of the bank is critical for the full recovery of the country's economy," the EBRD said in a statement. (Reporting by Marc Jones, editing by Carolyn Cohn)