CNA has learnt that among the issues on the table are the legal consolidation of financial institutions, the balance sheet of the new Bank of Cyprus, the appointment of an independent auditor to assess the balance sheet of the Bank of Cyprus and former Laiki, issues concerning exemptions from the haircut on bank deposits, as well as corporate governance.

Later on, the Troika team will discuss with officials from the Bank of Cyprus issues relating to inflows and outflows of transactions. In the afternoon, they will return to the Central Bank to discuss issues concerning the restrictive measures imposed on bank transactions after the Eurogroup’s decision on Cyprus on 25th of March.

The Troika technocrats are expected to meet with representatives of the Cyprus Chamber of Commerce and Industry and the Cyprus Employers and Industrialists Federation to discuss problems arising from the restrictive measures. The Troika delegation will remain in Cyprus until Friday.

Following decisions by the Euro area Finance Ministers, collectively called as the Eurogroup, Cyprus will receive a €10 billion bailout from the ESM and the IMF after bailing in bank uninsured deposits in a bid to recapitalize the island`s troubled banks, which posted massive losses worth of €4.5 billion due to the Greek sovereign debt haircut.

Furthermore, the island`s second largest bank, Cyprus Popular bank, is wound down and its good part (loans and deposits below €100,000) is folded in Bank of Cyprus (BoC). So far 37.5% of uninsured deposits in BoC have beenconverted into equity, whereas an additional 22.5% remains frozen until the conclusion of an independent evaluation of the Bank`s balance sheet after absorbing the good part of the Cyprus Popular Bank.

Source: Financial Mirror