In a press release, the Bank says that, "after taking into consideration the significant reduction of ELA funding by €9.4 billion since April 2013 to a current level of €2.0 billion, the Board of Directors of Bank of Cyprus Public Company Ltd, at its meeting held on 16 August 2016, decided to proceed with the cancellation of (i) Guaranteed Bonds of €500,000,000 (BOCYG ISIN CY0143940118) issued on 14 November 2012 and (ii) Guaranteed Bonds of €500,000,000 (BOCYG2 ISIN CY0143950117) issued on 27 November 2012."

It is clarified that "the decision is subject to approvals/consents from the competent authorities."

"The Guaranteed Bonds were issued under the provisions of the Law on the Granting of Government Guarantees for Loans and/or Bonds issued by Credit Institutions, of 2012 (L.156(I)/2012), as amended, and the relevant Decrees, were wholly retained by the Bank and were used as collateral for ELA funding," the press release says.

It adds that "overall the Bank repaid €1.8 billion of ELA funding year to date and is on track to fully repay ELA funding by the end 2017."

Source: Famagusta Gazette