Cyprus's central bank, known as CBC, said Monday that it has
appointed a special administrator to implement the restructuring of
Laiki Bank, the country's second-largest lender, which is also
known as Cyprus Popular Bank PCL (CPB.CP).
"The CBC announces that in its capacity as the Resolution
Authority, it has, as of today, appointed Ms. Andri Antoniades as
the Special Administrator to implement the restructuring of Laiki
Bank," it said in a statement.
It was announced last week that Laiki Bank will be split into a
"good" and "bad" bank, with the bad bank to be run down over time.
The good bank will be folded into Bank of Cyprus, the country's
largest bank, and all guaranteed deposits of up to 100,000 euros
($129,855) will be moved to Bank of Cyprus. Deposits at Laiki of
more than EUR100,000, which amounts to EUR4.2 billion, would be put
in the bad bank.
The Cyprus Central Bank said the agreement at a Eurogroup
meeting earlier Monday "ensures that Cyprus has avoided default and
the associated consequences this would have had for the country,"
adding that the agreement has also avoided the disorderly default
of Laiki Bank.
Write to Philip Pangalos at philip.pangalos@dowjones.com
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