Cyprus, troika agree on bank supervision, capital ratio
ATHENS (Reuters) - International lenders negotiating a bailout with the Cypriot government have agreed on a key capital ratio for banks and a system for the sector's supervision, officials said on Saturday, signalling some progress in the talks.
Cyprus has been holding talks with European Union and International Monetary Fund to get financial aid after its banks were battered by its exposure to debt-crippled Greece.
The lenders, who were due to leave Cyprus on Sunday but are now expected to leave next week, agreed during talks on Saturday that both commercial banks and cooperatives would be overseen by the Central Bank, Finance Ministry and Central Bank officials said. Cooperatives were previously overseen by a separate authority.
They also set a core Tier 1 ratio - a measure of financial strength - of 9 percent by the end of 2013 for banks, which could then rise to 10 percent in 2014, the Finance Ministry and Central Bank sources said. They had previously been discussing setting the ratio at 8 percent.
But the two sides remain at odds over the amount needed to recapitalize banks, as well as over the lenders' demands for privatizing assets and cutting wages and pensions.
The size of the potential bailout - speculated to be anything between 11 and 16 billion euros and the bulk of it for banks - will be huge in proportion to the 17.9 billion euro economy, the third smallest in the euro zone.
(Reporting by Constantinos Tsindas; Writing by Deepa Babington; Editing by Alison Williams)
- Tweet this
- Share this
- Digg this
- Pakistani family sentenced to death over "honour killing" outside court
- Alumnus dead after opening fire at Florida State University, wounding 3 |
- Mike Nichols, award-winning American director, dies at 83
- UPDATE 2-Doctor who treated source of second Mali Ebola outbreak dies
- Mike Nichols, award-winning American director, dies at 83 |
Kotak Mahindra Bank has agreed to buy ING Vysya in an all-share deal valuing its smaller rival at $2.4 billion, bulking up as analysts predict the start of long-awaited consolidation in a crowded banking sector. Full Article
U.S. court overturns bid by Ranbaxy to block launch of rival generic drugs. Full Article
Tech Mahindra to buy U.S.-based network services operator for $240 million Full Article
Infosys unit's overbilling Apple led to exit of top execs - sources. Full Article