June 27, 2012 / 9:17 AM / 7 years ago

UPDATE 1-Bank of Cyprus to seek temporary state aid

(Adds details)

NICOSIA, June 27 (Reuters) - Cyprus’s largest lender Bank of Cyprus said it would apply for temporary state capital support of 500 million euros ($623.6 million) to meet a deadline to bolster its regulatory capital by June 30.

Cyprus has already applied for an EU bailout to aid its second-largest lender, Cyprus Popular Bank, which needs 1.8 billion in regulatory capital.

Bank of Cyprus said on Wednesday it would aim for the state support to be in the form of non-equity capital. It said earlier requests for an extension of the deadline to meet capital requirements had not been granted.

The European Banking Authority had estimated Bank of Cyprus’s capital needs at 1.56 billion euros in late 2011.

The lender had raised part of the sum through a rights and convertible securities exchange earlier this year and was in consultation to dispose of its insurance division. ($1 = 0.8019 euros) (Reporting By Michele Kambas; Editing by Alison Birrane and Hans-Juergen Peters)

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