Bank of Cyprus made history in the eurozone debt crisis as the first bank forced to convert uninsured deposits into equity as a condition for Cyprus to receive €10 billion in aid from the European Union and the International Monetary Fund.

The EBRD announced on Tuesday that it would invest up to €120 million as part of the bank’s restructuring programme. Bank of Cyprus said earlier that it plans to sell up to €1 billion 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.

Source: Cyprus Mail