Government will repay €750m of Laiki bonds to BoC

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The finance ministry released a statement notifying the Bank of Cyprus that on June 9th, 2015 they will partially repay a €1.1B bond it is currently holding that was issued in 2012 which was needed at the time to recapitalise Laiki bank (also known as Cyprus Popular Bank) the lender stated.
The government will repay €750m of the bond which the Bank of Cyprus acquired together with other assets from Laiki in 2013 as part of Cyprus’s bailout terms. The bond is pledged as collateral with the ECB, the Bank of Cyprus said adding that it will utilise a section of the amount repaid in order to reduce its reliance on the ECB’s emergency reserve funds. “With the bond transferred to the bank at fair value at the acquisition date, there will be an accounting profit of approximately €33m as a direct result from this transaction”.