|Bank of Cyprus to Sell Assets in Romania as Part of Exit Plan|
Bank of Cyprus will sell assets in Romania worth about 95 million euros as part of its plan to cease operations in the country, a statement said.
"The sale is being implemented as anticipated by the Restructuring Plan. It is also in line with the Group's decision to gradually reduce its presence in Romania and to finally exit the Romanian market," the statement said.
The Bank of Cyprus statement said the sale is estimated to take place not later than the end of October, adding that the proceeds will enhance the bank's liquidity position. It also said it will help the bank dispose operations that are considered as non-core.
Bank of Cyprus is in the process of acquiring additional capital amounting to 1 billion euro that will raise its core tier 1 capital to 16.1 percent ahead of stress tests of European Union banks considered to be systemic in the coming months.
The bank is practically the only lender in Cyprus because of the size of its business but has to cope with a mount of non-performing loans which have reached an estimated 45 percent of its loan portfolio.
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Published on our website on Aug.21, 2014