According to BoC chairman Christis Hassapis, the decision was a result of consultation with the Ministry of Finance and the Central Bank of Cyprus.

The Bank has proceeded with the release of the nine-month time deposits in three parts: one third of nine-month time deposits is immediately released and becomes available in clients’ current accounts, one third of nine-month time deposits is converted into a three-month time deposit maturing and automatically released at July 31, 2014 and one third of nine-month time deposits is converted into a six-month time deposit maturing and automatically released on October 31, 2014.

“The Bank’s improving liquidity position and its specific and deliberate actions to enhance its liquidity through deleveraging are the decisive reasons for the release of the deposits. Furthermore, the release of the deposits reflects the Bank’s prudent liquidity management and takes into account the improvement in the economic environment,” Hassapis said.

He added that with its decision, the bank’s management recognises the improving trust and confidence from customers. The released funds will be subject to the general restrictive measures currently applicable in the Cypriot banking system.

Source: Cyprus Mail